Ahmad Areeb

UM4050

PUM21018

The need for sustainability in the real estate industry is hard felt. The Real Estate industry contributes to 38% of total carbon emissions, 28% arises from operational needs, i.e. heating, cooling,  and power requirements and 10% arises from the high energy-intensive materials used in construction. Real Estate developers and businesses renting commercial office spaces recognize the need and benefits of retrofitting existing buildings and developing new buildings on the principles of green development. Economic research suggests that these buildings command rent and price premiums. If the higher premiums are ascertained, it will incentivize the developer and business community to shift to the cause of green building development. This present study aims to identify the drivers of the economic value of Green Buildings and estimate the price premiums using hedonistic regression analysis.


Report Content

Introducing the topic and setting the context.

Green buildings, their certifications and benefits.

Studies on the economics of green buildings.

The characteristics used to collect data points for green buildings.

Understanding the real estate market for commercial and residential buildings.

Highlights on green buildings in Ahmedabad.

Price differences between green and non-green buildings.

Plotting variations between green prices and the market.

Inferences from the hedonic model.

Recommending improvements to shift to the cause of green building development.