Research results have revealed that the base cost of building a green structure can be up to 16% higher than that of a conventional building.
However, other studies with contrasting results indicate that engineers and the public may be overestimating the costs of building green structures. Around 60% of the world's population believes that it is more expensive to build a green building than a traditional one. But, according to a study, building green buildings costs 6.5 percent more on average.
Nevertheless, these buildings have been shown to be rented 13.3-36.5 percent more. Sustainability is a global trend that is reshaping Australian construction, along with digitalization and higher quality constructions. Green building is not only beneficial for the environment, but it can also compensate for labor shortages and minimize construction waste. Despite popular belief, green buildings are only 2% more expensive to build. When life cycle costs are taken into account, the cost of sustainable construction is lower, with an average operating savings of 14 to 19%.
The cost will also depend on the availability and cost of skilled labor for these alternative construction methods. A study conducted in the United Kingdom compared the investment costs of developing conventional buildings with ecological certification and without certification. The Newecology report states that “the development costs of green buildings ranged from 18% to 9% above the costs of conventional affordable housing projects”.This is the message that emerges from the most exhaustive study carried out to date on the marginal cost of green building, focusing on the commercial real estate market in the United Kingdom. Many architects, engineers and design firms are unfamiliar with integrating sustainability features, such as energy efficiency, into building designs.
The World Green Building Council states that construction accounts for 36% of global energy consumption and 39% of global CO2 emissions. It seeks to incorporate resilience into its sustainable construction practices to extend the life of a building and reduce the demolition of existing structures. However, the misconception that green buildings are unaffordable prevents developers and owners from investing in this type of housing. Beyond the financial benefits, green building has health benefits for occupants, as found in other research. For example, it's greener to use fewer windows, but that decision must be made very early, in the design phase.
Kok believes that learning and competence will ultimately reduce design costs and lengthen construction time. That's what I pay in advance before getting a construction loan: my own money goes to a design set and a plan that I can then take to potential tenants, investors, or occupying owners to remove that building from my balance sheet. Despite having high initial costs, the construction of these sustainable buildings promotes long-term savings. On the other hand, sustainable materials are environmentally friendly products that have undergone environmentally friendly and future-focused production processes. The concept of green building is gaining importance in several countries. These are buildings that ensure that waste is minimized at all stages of construction and operation of the building, resulting in a low cost according to technology experts.
This means that certified buildings are easier to rent, as they remain less inactive, reducing costs for real estate operators and owners.