The real estate industry has plenty to contribute to helping preserve the environment
With an economy that continues to improve slowly but surely, industry experts have gone on to project local real estate is likely to sustain its 6–7 percent annual growth rate beyond this decade. While consistent customer demand, strong IT-BPO and manufacturing industries, and favorable demographics all but confirm that growth, some fundamental concerns must also be addressed to ensure that not only does the growth continue, but it does so correctly.
One significant concern that involves real estate is the environment. The number of high-rises and mixed-use developments continues to increase to meet the rising demand for real estate, but this proliferation of large, built-up structures also has a negative impact on natural surroundings. While utilizing land cannot be totally avoided, certain methods can be, and already are being taken by different parties in the real estate industry to better conserve resources.
The Need for Environmental Standards
While some developers and builders have taken an interest in being more environmentally friendly, it is important that all adopt a unified standard regarding environmental preservation. Although it seems that being conscious of the environment is contradictory for a business focused on exploiting land and its resources, several governing bodies have actually already made an effort to improve the general standard, and have proven that going green is not necessarily unfavorable to business.
For example, in 2007, the Philippines Green Building Council (PHILGBC) established the “BERDE” rating system. It is similar to the LEED certification of the United States, but aptly designed by the non-governmental organization to be more in line with those of other local environmental councils and takes better account of local conditions.
The national government, for its part, has established and continues to tweak the National Building Code of the Philippines, the purpose of which is “to safeguard life, health, property, and public welfare, consistent with the principles of environmental management and control.”
The Department of Public Works and Highways (DPWH), in cooperation with the World Bank–International Finance Corporation and the Philippine Green Building Initiative (PGBI) launched the Green Building Code in June 2015. The code “seeks to improve the efficiency of building performance through a framework of standards that will enhance sound environmental and resource management to counter harmful gases, throughout the building’s life cycle, including efficient use of materials, site selection, planning, design, construction, use, occupancy, operation and maintenance, without significant increase in cost.”
Local Developers Fulfilling Green Building Principles on Their Own
Some challenges have unfortunately slowed the full implementation of the previously aforementioned standards. Mostly, this has been due to the lack of qualified building inspectors, limited local availability of green building materials and technologies, and a general lack of expertise on green architecture and building.
So for the time being, green building must be a self-fulfilled destiny in the Philippines. Developers, builders, and other industry professionals must take it upon themselves to build and manage property in the most environmentally friendly manner possible.
Although at present the costs associated with sustainable architecture and design are high, the amount spent can pay dividends in the future. Offices, businesses, and other property seekers are often willing to pay more to meet environmental standards. Green buildings now also ensure that structures are ready for any environmentally friendly advancements in the future, lowering customization costs.
According to real estate services firm CBRE International, qualifying for certifications like LEED commonly adds around two to three percent to a development’s cost. While somewhat steep no matter the size of the project, the added expense can be offset through savings in utilities like water and electricity. PHILGBC, on the other hand, has conducted studies and research that show green building features have a payback period of around five years.
Placing More Emphasis on the Conservation of Energy
It is difficult for a business and the overall economy to grow and have sustainable development when its power supply and distribution are unstable and costly. Unfortunately, this is the case in the Philippines, as electricity prices in the country are some of the highest in the world. A lack of exploration of alternative energy sources, as well as the government’s taxing of end-users, are also culprits in this regard.
Commercial and residential buildings, according to the Department of Energy, were responsible for 63 percent of 38.9 million MWh of total energy consumption in 2013, which had grown by 45 percent in the preceding decade. As such, it is important for developers and building administrators to help lower the energy requirements of real estate developments, both for the environment and to better reduce utility costs.
The use of solar energy is one of the solutions that first come to mind, but apart from storing power from the sun for future use, there is more that can be done. This includes utilizing green building concepts like that from the traditional bahay kubo (nipa hut), where natural light and natural cooling are maximized through design and the use of indigenous materials.
Building Vertically and Renovating into Green
With the previously mentioned year-on-year growth projected by experts, the continued tendency is for developers to build vertically with greater density, as opposed to horizontally. While the initial intent of vertical building is to produce the most livable space out of limited land, if executed via more environmentally sustainable methods, this method is foreseen to contribute greatly to the preservation of open spaces with natural resources and habitats threatened by rapid urbanization.
Another direction experts believe builders and developers should take is renovating or remaking already existing structures to incorporate eco friendly features. The cost of demolishing existing structures, and building something new from the ground up, is significantly higher than remodeling to greener facilities.
Main image via IngImage
