The push for an increase in economic growth via new construction projects solely for the sake of profits and industry may be a thing of the past. The current trend of sustainability which was at one time just mere whispers among a selected few is gaining momentum. Savvy investors are becoming more and more interested in this trend.
Newbies to real estate investment can benefit by connecting with professionals who are closely connected to this current eco and people-friendly concept. If you’re new to the industry, it’s best to learn all you can before diving into the somewhat confusing world of real estate investments.
What Is Sustainable Development?
The Institute for Sustainable Development describes sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” But what exactly does this mean?
It’s its broadest sense, sustainable development is about changing our views on what the priorities are when moving forward with new real estate projects. What were once top priorities, things like return on investment, bottom line profits, and other financial motivators, may not be the only factors to consider in today’s world of real estate development.
Sustainable development has three main pillars:
- People – Understanding the needs of those who will be most affected by new real estate projects. This can include fair wages for those directly involved in the construction process and also how it will affect the quality of life of those in the area.
- Planet – The use of eco-friendly components and more efficient designs for new construction are of utmost importance. A balance must be found between sound and affordable building and doing the least amount of harm to the environment.
- Profit – This not only includes a financial profit for the investors but also how the project can benefit the community.
What Are Some Examples of Sustainable Development?
The concept of sustainable development may be at first difficult to grasp, but when you learn of its benefits, it’ll quickly make sense. Many of its concepts not only make good financial sense but also benefit those who will use the newly constructed space as well as the environment.
- Wind and Solar Energy – New construction that utilizes the power of the wind and the sun helps to reduce a building’s carbon footprint. They are more energy efficient and lower the consumption of fossil fuels.
- Development of Green Spaces – Incorporating green spaces into new construction projects not only makes them more aesthetically pleasing, but they can also help to filter out pollution. Public green spaces benefit the entire community.
- Water-Efficient Fixtures – The amount of water a building uses can be significantly reduced by employing water-efficient fixtures. Their use can help to lower costly water bills for tenants or property owners, but they’ll also help to save our planet’s most valuable and limited resource.
Are Sustainable Development Real Estate Projects Profitable?
When done properly, real estate projects that follow the concepts of sustainability are profitable. This is due to a few different factors. Profitability not only comes down to cost savings and ROI but there’s also immense value in how you’re viewed by the community.
- Improved efficiency – Real estate that’s followed the rules of sustainability runs more efficiently than older, less modern buildings. Reduced water use and supplying power by eco-friendly methods can reduce costs and increase a building’s profits.
- Attracting new customers – Today’s generation is much more eco-conscious than in the past. Many looking to rent, lease, or own new spaces are solely focused on construction that has been done in ways that are kinder to the environment.
- Improved business reputation – Green construction can improve a business’s reputation which in turn could increase profits. Having a good standing in the community by employing sustainable concepts can help to increase visibility.
Sustainable Development and Real Estate Investments: Final Thoughts
There’s been a shift in priorities when it comes to real estate investments. In today’s more eco-friendly world, many investors prefer to put money into projects that are not only good for the bottom line but are also good for the environment and the community. The trend of supporting businesses that employ sustainability methods is growing and could prove to be the most profitable type.
If you’re curious about sustainable development and real estate investing, contact investors who are connected to these types of opportunities.