Energy-efficient buildings have higher property value, study says
According to a joint study by the Building and Construction Authority (BCA) and the Department of Real Estate at the National University of Singapore, the process of retrofitting commercial buildings can lead to an increase for the value of the property, reported Channel News Asia.
Six other real estate consultancy firms also collaborated in the study, which verified the notion that retrofitting buildings can lead to a significant reduction in the energy consumption for the structure, according to The Singapore Business Times.
While this finding was a key portion of what the study set out to prove, the notion of increased property value arose after the data was released.
“There is now greater awareness in the industry that the upfront cost of retrofitting energy inefficient buildings can be recovered in about four to seven years,” Quek See Tiat, chairman of BCA, said in a conference. “However, many do not realize that another potential economic benefit is the potential enhancement in the property value for green and energy efficient buildings.”
The study in Singapore detailed much of what the U.S. has tried to do with its energy efficient building research, which has taken place at several sites including the GPIC Initiative in Philadelphia.