Real Estate: Green is the new Black
Posted on Wed, Jan 26, 2011
Green-Peace, hippies, and tree-huggers have often been relegated to the back row of the newsstand where they adorn the covers of new-age magazines advocating the use of incense and crystals to be “at one with the cosmos.”
But a change is unfolding. At the start of the new decade in 2010 and going forward the challenge is to showcase green-initiatives as being not only environmentally beneficial but also financially viable. Green (or sustainable) building, for example, is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle: from site selection and design to construction, operation, maintenance, renovation, and demolition. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort.
Although new technologies are constantly being developed to complement current practices in creating greener structures, the common objective is that green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by:
- Efficiently using energy, water, and other resources
- Protecting occupant health and improving employee productivity
- Reducing waste, pollution and environmental degradation.
The focus on our carbon footprint has huge implications for housing market affordability, land-market economics and politics. In the UK, some analysts indicate that building green is significantly more costly; up to a 22% price premium over conventional methods. With buyers already struggling to afford homes in South Africa, consideration must be given to these increased costs. Ultimately the law of incentives, also known as WIIFM (what’s in it for me), is what will drive this.
WIIFM
In South Africa there is a widening gap between housing delivery and demand. Government RDP initiatives, while noble, give little consideration to long-term viability or to the comfort of the occupant. Due to corruption, financial inefficiencies and a growing population, informal settlements mushroom along urban boundaries. Accompanied by poor sanitation, health problems and pollution, the challenges are endless and solutions thinly spread. As government tries to eradicate poverty, energy needs will increase compounding the challenges.
Melissa Whitehead, Managing Director at Urban Energy Conservation & Transport (UECT) elaborates: “RDP houses are very small and do not take in to account the long term living experience of the resident. Energy issues need to be incorporated. Essentially a comfortable, smoke-free environment leads to a healthier environment and more productive workforce. These poor design principles results in most houses being unbearably hot in summer and icy cold in winter. The International Institute for Energy Conservation (IIEC) Africa has implemented the Sustainable Homes Initiative along with the Green Professionals Initiative. These two programs aim to implement low-cost design interventions to change the way that architects, quantity surveyors and builders work. The interventions include relatively simple house orientation, roof overhangs, window size and position and choice of building materials. Energy-saving principles within this program have already had a positive impact on over 60,000 houses in SA and improved the quality of life for the families that live in them.”
Practical alternatives
In the private sector shortages and the escalating costs of electric power and water, motivate developers and planners to build energy efficient or alternative energy units. These range from simple solar geysers to high-tech computer-regulated buildings. Some have electric generators powered by sun or wind or use efficient heating/cooling systems to negate the use of conventional air-conditioning.
A geothermal exchange heat pump, for example, uses the Earth as either a heat source, when operating in heating mode, or a heat sink, when operating in cooling mode not dissimilar to your home refrigerator. Such a source of “green” renewable energy is particularly useful in areas which have large seasonal air temperature variations. Relative to air-source heat pumps, they are quieter, last longer, need little maintenance, and do not depend on the temperature of the outside air.
The energy comes directly from the land; it’s free, renewable and environmentally friendly. Buildings are responsible for 40% of the world’s electric energy, resulting in 30% of all CO2 emissions. By using renewable forms of energy one can meaningfully reduce these emissions when compared to a fossil-fuel fired electricity production.
As a bi-product in summer, geo-thermal exchange heat pumps can be designed to produce free hot water to either pre-heat a domestic geyser’s water or a swimming pool. The heat comes from the waste heat extracted from the building when cooling.
These and other attributes of modern green buildings appeal to the broader buying public, many of whom are prepared to initially pay the little extra for a house or unit, knowing that running costs will be reduced and they are doing their part in the reduction of greenhouse gases.
Green Residential Certification
Following on from the Green Star SA Office & Retail Centre rating-tools, a Multi-Unit Residential PILOT building rating-tool was released on 10 December 2010 allowing for public and industry comment prior to the release of the final version.
The rating tool assesses the environmental attributes of new multi-unit residential developments such as apartment buildings, townhouses, gated communities, retirement villages and golf estates. The tool assigns a Green Star SA rating to the base-building dwellings, common property and shared services and infrastructure on the basis of design potential. In due course, these and other certification services will become sought-after marketing tools, attracting more and more energy-responsible buyers.
Summary
Environmentally, South Africa has reached a tipping point. Irrespective of whether the property being developed is for low-cost RDP housing or a large office building, there are unambiguous benefits. Energy conservation principles and interventions are a critical component of the sustainable development paradigm and can help forward-thinking professionals appreciate the “do-good” factor as much as ensuring such a project is financially in the black. Indeed, green is the new black!
Dieter Deppisch
Head: Research & Development
Knowledge Factory