Valuing the changes - Will investment in sustainable features be recognised in market value
Year: 2007
Type: conference-paper
Abstract: Sustainability has rapidly evolved as a key issue within the development and use of the urban, built environment. Due to its emergence over such a short period of time, most efforts have been directed at exploring and offering suggestions on physical issues such as energy usage, design and operational solutions. The suppliers of new product into the market – developers, architects, builders, building product suppliers, etc can be justifiably proud of the achievements to date. However, more research and development is needed within all areas of production that will refine the products further and we need better ways to refurbish existing stocks. Nevertheless, the built environment sector has demonstrably achieved more in addressing the issues of sustainability compared to manufacturing, mining, primary production or the services sector in general. Sustainability is now a mainstream “pressure point‿ for all of those sectors, none more so than the built environment given that, for example, they are responsible for 40% of all energy consumption and 40% of all atmospheric emissions (AGO 1999). Without denigrating past achievements, it is reasonable to observe that our efforts and focus has been largely “supply‿ oriented. We are experiencing a dramatic situation that is emerging with global change in its various forms and we continue to translate that into adaptable, flexible and sustainable products particularly in long term, high value products such as redeveloped property. But we know – and if we don’t our banks will tell us – that a supply side approach particularly in such complex economic environments, is fundamentally flawed and incomplete. Unless the market identifies the values and demands of a particular product (or generic principle such as sustainability) we will never achieve the level of certainty and predictability that stable markets require. On that premise, this paper makes some observations on these demand parameters and how they may change and develop into the future. They are observations of not simply about the individuals in the market place but more importantly the approach taken by financiers (and their professional advisors such as valuers) who provide the financial underpinning for that demand.
Authors: Michelle A. Gane, Michael J. Hefferan
Language: English
Subfield: Building and Construction
Field: Engineering
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W9952167