Even with its popularity among younger generations, and its importance for environment preservation; investing in the sustainable real estate housing market can still seem like a not so attractive idea for many real estate investors. Nonetheless, sustainable real estate investment opportunities can bring some of the best profits in the market.
Not only are Eco-Houses good for the environment and generational sustainability, but they represent the future of the real estate developments, guaranteeing a growing and profitable market.
- Eco-Houses actually generate higher income. With up to a 25% higher sale price and 5% higher rental prices, green buildings can represent a higher revenue on a long-term basis than regular homes. Also, younger generations like Gen Zers, driven mostly by long-term value and social responsibility, have surveyed to be willing to pay up to 10% more on sustainable options (World Economic Forum, 2022).
- Sustainable Homes save thousands on energy costs. From $1,600 USD up to $8,000 USD a year; sustainable installations not only lower your carbon emissions, but actually represent a lower energy consumption with lower prices. In contrast, to the initial cost of installing these types of equipments, that in fact can be high at first, self-sustaining homes are more profitable, by not relying on paying third parties resources for its functioning.
- Green Buildings have a higher occupancy rate. Eco-Friendly buildings ten to enjoy a higher occupancy rate, up to 23% more than regular options, depending on the city. Due to the newest generation’s preferences, and also, because they are relatively new to the market, they tend to offer the better quality and value, as well, as newest equipment and smart home technologies.
- The Sustainable Real Estate Market is one of the fastest growing. Having come into popularity just some years ago. By 2022, the global market for green buildings is set to reach $364.6 billions dollars; affirming not only its popularity, but the high demand and paying prices for these types of real estate investment opportunities (Market Research Firm Grand View Research, 2022).
- Experts are betting on the Green Real Estate Market. The JLL “Decarbonizing the Built Environment” report, estimated that at least 63% of leading investors in the marker agree on the fact that sustainable properties enjoy higher occupancy, rents, prices and overall value. Also, these types of properties enjoy special benefits, like the fact that 37% of major banks offer homeowners of sustainable real estate, more favorable mortgage rates and overall coverage.
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Sources: Forbes, FirstInsight, NorthCo, Richard Van Hooijdonk, MSQM, Schneider Electric, World Economic Forum