Investing in green and energy-efficient improvements to property 'pays'

27 April 2012

Posted by Michelle Devonshire

Green construction techniques and good environmental management practices can provide companies in the commercial real estate sector with profits.

This is according to a new report on sustainable building in the United Arab Emirates (UAE) - written by real estate specialist Cluttons - which outlines the case for more eco-friendly structures and notes that landlords, businesses and tenants are all "becoming increasingly aware of the various advantages of occupying green buildings".

The company notes the marketability of buildings can be boosted by putting measures in place and the lifespan of properties extended, with landlords profiting from any fall in controllable expenses such as energy use.

"Energy efficiency improvements are a direct and relatively simple way to reduce the carbon footprint of real estate," said Jonathan Fothergill, Cluttons UAE Valuations Director.

He added enhancements to buildings can also deliver "real economic savings" to both rising property level revenue and operating expenses.

A target has been set by the UAE Government to reduce the territory's carbon footprint by 120 per cent by 2015 and guidelines are being drawn up covering areas such as lighting, water, cooling and insulation to ensure this goal is achieved.

The potential benefits to a company's reputation of good environmental management has been highlighted by the Global Warming Alliance, which has stated commercial enterprises taking trouble to safeguard the planet are valued by members of the public.

According to the organization's Campaign Director, Louise Burfitt-Dons, consumers are becoming more environmentally-aware, while businesses can also generate substantial savings through green policies such as recycling, paperless billing or reducing energy consumption.

Implementing stringent sustainability standards can be particularly important as energy and materials costs are rising for firms, meaning that efficiency efforts provide both social and economic benefits.