Hadvani Happy Dineshbhai

UM4050

The need for sustainability in the real estate industry is hard felt. Real Estate industry contributes to 38% of total carbon emissions, 28% arise from the operational needs, i.e., heating, cooling and power requirements and 10% arise from the high energy intensive materials used in construction. Real Estate developers and businesses renting commercial office spaces are recognizing 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 sell price premiums. If the higher premiums are ascertained, it would work as an incentive for the developer and business community to shift to the cause of green building development. This present study aims to identify the drivers of economic value of Green Buildings and estimate the rent and price premiums using hedonistic regression analysis.