Green rent 'more attractive', says Rics

Posted: 01 Apr 2009 12:21:33 GMT

The rental premiums on buildings awarded an Energy Star rating in the US have been found to be higher than those which did not boast the same green credentials.

Research published in a report from the Royal Institute of Chartered Surveyors (Rics) shows that the demand for green buildings is very real, and could be the first step in creating a higher supply of environmentally friendly buildings.

A wave of green renovations to existing buildings or large-scale construction of green homes could offer the construction industry a much-needed boost amid the current recession.

Per square foot, the rental premiums on green buildings were three per cent higher than those on normal buildings, the Rics report claimed.

Differences found in the sale prices were even more pronounced as the report discovered that, on average, the sale price of a green building was 16 per cent higher than non-green buildings of a similar design.

"With more comprehensive evidence based research, such as this paper, the economic argument for having an energy efficient building will be strong," explained Simon Rubinsohn, Rics chief economist."



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