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One of the toughest challenges faced by the modern world today is fighting against global warming and all its effects. Balancing the impact of environmental factors and financial performance to businesses has become a conflict that needs to be addressed over the coming years. IPD is an international organization in real estate that provides benchmarking andanalysis to its clients in more than 30 countries. IPD came up with 120 indices that will evaluate the performance of real estate properties all over the world. One of the most important indices that played a great role in Australian real estate is the Annual Australia Green Property Index.
The Australia Green Property Index is an annual investment indicator for environmental performance. This index is an important part of Australian real estate because of the fact that it reflects 54 billion Australian dollars worth of office buildings. The IPD Annual Australian Green Property Index measures the real estate investment performance based on the Green Star, NABERS Energy and Water rating.
Lower building cost, increased office productivity and a higher potential market value, these are all some of the benefits that you can enjoy from an environmentally friendly property.
In a separate study in California, it was found that a $2 million property can generate 10 times more income than those non-compliant to green plan. In terms of resale value, the green buildings both for commercial and residential purposes can be sold at higher prices in the market knowing the lower utility costs in these properties.
Considering the impact of real estate (both commercial and residential) properties in global warming, it is crucial to have indices like the IPD Australian Green Property Index to lessen the consequences to our environment, without compromising our very own comfort and income on the part of the real estate developers and owners. In the long run, this simply means that the government has to deal with less environmental consequences.
According to some studies, green offices generate higher returns annually than those that do not follow such practices. Those commercial offices that have been rated by Green Star and NABERS in 2012 have higher total annual returns compared to the different offices unrated.
The Australian Green Property Index has allowed better maximization of space creating higher capital return in the process. Green offices, according to reports in 2012, have managed to rake 10.2-10.7 percent returns for those with five to six star rating from Green Star. For those assets with 3.5 star NABERS Energy rating, an average of 8.4% return was seen in that year.
Considering the tough real estate market, prices of such properties, and the pressure to generate income, IPD Australian Green Property Index tackles all of them to meet in a grey area. It maximizes every square feet of commercial space to the point that properties increase their returns in a significant manner. In fact, (it is) higher than most commercial properties that have not been rated for its efficiency.
To discuss NABERS call Ausnviro today on 1300 622 377 or visit our contact page.
