Sustainable Real Estate Development Research Articles

A Comparative Study on the Investment Intention of Koreans and Chinese in Sustainable Real Estate Development within the Circular Economy

A Comparative Study on the Investment Intention of Koreans and Chinese in Sustainable Real Estate Development within the Circular Economy

Green metal price volatility and environmentally sustainable real estate development nexus: A global perspective from post COVID-19 pandemic

This study examined the relationship between green metal price shocks and green real estate development using the Structural Vector Autoregressive (SVAR) model. Real-time daily dataset for the study covers the period from January 4, 2021, to December 30, 2022. The findings are presented using two methods: cumulative impulse responses and variance decompositions. The cumulative impulse responses show how structural shocks affect the volatility of green real estate over time. The variance decompositions show the percentage of the variation in green real estate volatility that is caused by each structural shock. The results showed that green real estate development responded negatively to green metal shocks for at least half of the observed period, and the energy price, specifically oil, had a greater and more persistent negative impact. This suggests that changes in oil prices may continue to have a significant influence on the development of green real estate projects and the broader transition towards environmentally sustainable practices in the construction industry. The explained variable, on the other hand, had a positive response to shocks associated with green finance in the latter part of the observed period. Policy and practical implications of the findings have also been discussed.

Exploring The Barriers to Global Trends in The Real Estate Development Industry: A Focus On Nigeria

This general review paper explores current global trends in the real estate development industry as well as identifies the barriers to the growth and development of these industry trends in Nigeria. This study adopts the desk research approach using secondary information sourced from diverse databases. Content analysis of the secondary data show that advanced and some emerging markets have made tremendous progress in sustainable real estate development, disruptive technologies application in real estate development, real estate transparency, and development laws and regulation compared to Nigeria an emerging market. Barriers to the growth and development of the global trends in Nigeria’s real estate development industry were identified and grouped into eight sub-categories. Understanding these barriers and means to address them by policymakers, built environment experts and developers will result to sustainable growth and expansion of Nigeria’s real estate development industry. Further quantitative survey should be conducted to rate these factors in their order of significance.

ADOPTION OF SUSTAINABLE REAL ESTATE DEVELOPMENT IN SRI LANKA: A GAP ANALYSIS

The real estate sector in Sri Lanka has been experiencing more remarkable growth during the past decades. The emergence of innovative local and foreign investors, favourable government policies, urbanisation, enhancement of housing requirements and other socioeconomic factors have driven the scope of the real estate sector to a greater extent. The drastic demand for investments and economic policies has transformed traditional real estate values into an innovative range while intersecting globalisation. The vast competition in the market, innovative trends, expansion of infrastructure, direct ownership opportunities, enrichment of living standards and growth of human needs have inspired real estate investors to achieve greater profits. Although such investment processes are empowered by governmental laws, regulations, policies and standards, the present nature of real estate investments exhibits a tendency not to sustain the future needs of Sri Lanka when achieving profits. Moreover, according to the literature and existing case studies, it is evident that investors avoid considering long-term solutions in real estate. Hence, this investigation demonstrates the necessity of adopting sustainable approaches to define a baseline for real estate investors’ financial perspectives within the Sri Lankan context. It examines the nature of practice in real estate to address the necessity of sustainable real estate development in Sri Lanka. The study has adopted a qualitative approach and aimed at obtaining data via secondary sources. The analysis of data was subjected to be undertaken through a content analysis for a better overview. The research findings are significant in assessing investment opportunities, valueadded real estate developments, sustainable necessities, and future trends in real estate development in Sri Lanka.
 Keywords: Real Estate, Sustainable Real Estate Development, Sri Lanka.

The Real Estate Market and its Influencing Factors for Sustainable Real Estate Development: A Case of Latvia

Abstract The tendencies of the development of real estate market could affect the tendencies within the real estate development. The development of the real estate market could be influenced by the variety of factors, depending on the economic system of the country and other factors. The aim of the research is to analyse the tendencies in the Latvian real estate market, by paying particular attention to its influencing factors and sustainable real estate development. The literature review, comparative, historical, statistical analysis, observation and logical access methods have been used in the research. The research provides an interdisciplinary view on the topic. Particular attention is paid to the case of Latvia. The research can be used to promote the importance of sustainability and sustainable development using different forms, mostly economic and environmental ones. Changes within the economic dimension, including changes of real estate market prices, and other significant aspects of real estate development can influence the sustainability of the real estate market in general and may affect the financial results of market participants. Thus, the research can also be useful for real estate developers for a planned, balanced and financially successful entrepreneurship in the changing environment.

Green Premium: What is the Implied Prognosis for Sustainability?

Economic considerations underpin almost every decision to determine social priorities. It is not surprising then that sustainability has fast become, among other things, economic advocacy. This has led to a proliferation of studies to establish the provenance of a green premium to provide impetus for sustainable real estate development to drive the sustainability agenda. The extant literature is replete with studies that conclude that green buildings, which are a proxy for sustainable real estate, command a green premium, notwithstanding disagreement about the size of the green premium. We revisit the green premium debate by analyzing Building Research Establishment Environmental Assessment Method (BREEAM) certified office buildings (a proxy for green buildings) in the Greater London area to ascertain the prevalence of a green premium and to answer the following questions: is the premium truly green (green-magic)? What prognosis does the green premium provide for sustainability? The study uses quantitative analysis (a hedonic model to analyze 2,842 CoStar transaction data points from 2008 to 2018 inclusive) and psychographic analysis based on primary data from a questionnaire survey of approximately 450 BREEAM certified building owners and occupiers in the Greater London area to address the research questions. The preliminary results of the hedonic model analysis show that BREEAM certification commands a rental and price premium of 4.3% and 22.3% respectively. Furthermore, the results reveal that a higher certification level generally generates a higher premium while certified buildings in outer zones generate a higher premium than those in the CBD. In addition, the results of both the quantitative and psychographic analyses imply that the premium is more a novelty premium than green-magic. This portends a dismal prognosis for sustainability and warns that sustainability cannot be won on purely economic grounds. Finally, the results of the psychographic analyses show that there is no meeting of minds (consensus ad idem) between investors in green office buildings on one side and green office space users (tenants) on the other. The results of the study could be of interest to London green office building market participants, researchers, practitioners, and sustainability adherents.

Multi-Dimensional Approaches to the Development of Sustainable Real Estate Valuation Principles

The dimensions of real estate which begin as spatial within time added, and the time being includes ecological and economic self-history besides the sociality with cultural capitalized values influenced by technology and ethics. The aim of this paper, is to discuss the philosophy of value and valuation methods described for sustainable real estate development within its dimensions introduced here as ΣSoCulTΞ (Σ stands for eco-system, economic and ethics; SoCulT stand for socio-cultural values and T also for technical, and Ξ is history which stands also as a base of first three concepts) which the environment built by Anthropocene view. Built environment, in a way, is strategically designed by the construction industry, which is shaping and re-shaping the environment, which has the most powerful influence on the “economic capital and environment” in terms of adding value to the real estate leverage in the significance of genius logi. The so-called sustainable real estate has to power the highest and best use with functionality, energy efficiency, resource intensity, environmental compatibility, health, socio-cultural aspects, life cycle coast and technical quality to measure value/earning/worth. Value of sustainable real estate development, composed of the architectural design of built environment within sustainable architectural principles, approaches, constructional criteria, and methods. The evaluation of this composition includes, the investment on potential idea pending the realization of real estate, which is called earned capital, and the captured value as intangible assets at any stage of life-cycle of the real estate is also called earning/worth. The dimensions which are hidden in the facts of development of sustainable real estate valuation design which are captured in the ΣSoCulTΞ will be discussed by comparison as the method of sustainable architectural design, application, and life-cycle of a real estate and its valuation principles. Comparing the principles both the architectural design includes the engineering projects and the way of real estate valuation, we as designers may lead also the strategical perspective of economic investment. As a conclusion, the possible cross-info flow of these approaches has to become the shared values in the strategical planning, flow from concept to concept to keep the dimensions of real estate development in the sustainable reality.

The Impact of Zoning and Built Environment Characteristics on Transit, Biking, and Walking

This study furthers existing research on the link between the built environment and travel behavior, particularly mode choice (auto, transit, biking, walking). While researchers have studied built environment characteristics and their impact on mode choice, none have attempted to measure the impact of zoning on travel behavior. By testing the impact of land use regulation in the form of zoning restrictions on travel behavior, this study expands the literature by incorporating an additional variable that can be changed through public policy action and may help cities promote sustainable real estate development goals. Using a unique, high-resolution travel survey dataset from Denver, Colorado, we develop a multinomial discrete choice model that addresses unobserved travel preferences by incorporating sociodemographic, built environment, and land use restriction variables. The results suggest that zoning can be tailored by cities to encourage reductions in auto usage, furthering sustainability goals in transportation.

SUSTAINABLE DEVELOPMENT OF REAL ESTATE: DECISION SUPPORT MODEL AND RECOMMENDATIONS FOR THE PERIOD OF CRISIS

The aim of this paper is to propose a decision support model for real estate development and recommendations that could help Lithuania during economic crises. Research, theoretical and practical tasks of sustainable real estate development process were revised, particular examples presented. Different models and methods for analysis of real estate development discussed. Decision support model, encompassing extensive analysis of the global trends, best crisis management practices, assessment of the factual situation and provision of recommendations for different stakeholders under conditions of market instability presented. According to proposed model, the research was performed by studying the expertise of advanced industrial economies and by adapting such to Lithuania while taking into consideration its specific history, development level, needs and traditions. Basing on these findings, accumulated know-how, the results of previous scientific studies and practical insights of the other authors, specific recommendations to avoid crisis and minimize its consequences in macro-, meso- and micro- levels were provided. Recommendations illustrate holistic point of view and assumption that real estate development consists of creativity, research and art.

Comparative Analysis of Sustainable Real Estate Market Development in Two Northern Capitals: Case of Riga, Latvia and Stockholm, Sweden

Abstract Sustainable development becomes a necessary practice in every country. Real estate has always been an essential need for humans to survive, almost all human activities are related to real estate. Due to that, as well as due to the growth of population, real estate has grown in numbers in the world for our basic need fulfilment. Major studies have shown that real estate objects are one of the major contributors negatively affecting our environment. Sustainable real estate development is a crucial practice implemented by successful countries and other countries are following them, adopting good practice in this field. Sustainable real estate development analysis not only helps to solve climate change issues, but also increases asset value. The aim of the research is to analyze two northern region capitals: Riga (Latvia) and Stockholm (Sweden) and their major steps being taken to promote sustainable real estate development. The comparative, historical, logical and statistical data analysis methods have been used in the research.

Innovation Districts at the Cross road of the Entrepreneurial City and the Sustainable City

Innovation districts are designed to promote increased interaction between employees and firms in knowledge-intensive industries. They have been praised as both sustainable economic development and sustainable real estate development. Nevertheless, there has been little investigation of how those involved in the planning and development of innovation districts view the role of sustainability. In this paper, we draw on 40 semi-structured interviews with professionals associated with four innovation districts in the U.S. The results provide new insight into how these market participants perceived the components of sustainability in fostering innovation and project success. Economic attributes of sustainability were consistently emphasized as the primary driver of innovation district successes. Further, where social and environmental elements of these districts were acknowledged as factors contributing to project success, professionals tended to frame their roles in economic terms.

Analyzing the Perceived Benefits of LEED-Certified and Energy Star–Certified Buildings in the Realm of Local Economic Development

Data collected from a national survey of economic development professionals are used in this study to examine the perceived role of Leadership in Energy and Environmental Design–certified and Energy Star–certified buildings in the business recruitment process. A series of ordinal logistic regression models are estimated to examine economic developers’ attitudes toward these buildings after controlling for their personal characteristics and the characteristics of the communities where they work. The results suggest less favorable perceptions about this form of sustainable real estate development in smaller communities and those with weaker economic fundamentals. Furthermore, women employed in economic development are found to have more favorable attitudes toward these buildings than their male counterparts. Increasing support for sustainable real estate development among economic developers working in local government may therefore require a combination of thoughtful policy making, executive education, and greater gender diversity in the profession.

It Makes a Village: Residential Relocation after Charter School Admission

Although numerous studies investigate how student achievement is impacted by educational vouchers and charter schools, there appears to be no research on how these programs impact the surrounding environment. This study examines residential relocation of families whose children attend a charter school. We develop a conceptual model that predicts where relocating families are likely to move, given ex ante distance and direction to the school. The model is parameterized using data from student mailing address changes. We find that families are almost twice as likely to relocate toward the school as would be expected if the school did not exert any attraction. Moreover, although families are not required to live near the school, the child's school exerts a significantly stronger attraction than parent workplaces. This result may have important implications for mitigating urban sprawl, fostering urban renewal and promoting sustainable real estate development.

An Empirical Study of the Efficacy of Mixed-Use Development: The Seattle Experience

Over the past decade mixed-use real estate has received significant attention amongst real estate practitioners including both developers and city/ regional planners. This attention is understandable especially in light of renewed interest in urban revitalization and sustainable real estate development. Unfortunately, little empirical research has been conducted to identify the critical success factors for mixed-use development. This paper addresses this void and explores some fundamental questions surrounding when, why, and where mixed-use development is viable. It begins with an extensive literature review to help identify issues surrounding mixed-use development. It then explores some ‘‘lessons learned’’ in mixed-use development in Seattle where such projects have been encouraged by policy makers and other constituencies.

Sustainability Assessment Studies of Recreational Buildings

Sustainability Assessment Systems (SAS) quantify the value of sustainability the buildings have become popular not only in planning a sustainable real estate development, but also in scientific research. The main weakness of these tools is a lack of financial aspects, such as Building life-cycle cost analysis (LCC); inflexibility, complexity, unsound weights of the system and natural resources and environmental evaluation criteria dominance over the social and economic problems. Given this background, recommended Lithuania's recreational building sustainability assessment system is a modified BREEAM system which is complemented with social and economic criteria. Their importance is determined using analytic hierarchy process (AHP) method. Estimated Druskininkai “Snow Arena” sustainability's value according to the modified system is 66.54%, which equals “very good” result. According to BREEAM New Construction 2011 scheme 57.80% score was reached, which also corresponded to “very good” rating. The higher rating in the modified system was due to increased social and economic criteria weights, as well as the fact that the arena well satisfied these criteria.

Sustainable Real Estate Development: The Dynamics of Market Penetration

This paper uses three different data sources to examine the rate ofgrowth of sustainable development practices. Research analyses of theeconomic outcomes of green building are linked to short case studiesof green building in New York. The concluding data address macro levellimitations on the rate of diffusion and acceptance of green buildingtechnologies and costs. Limited and recent governmental policies aresuggested as the core method to increase the rate at which green buildingbecomes a national rather than an exclusive and limited method ofgrowth. The preliminary nature of these data sources and analyticmethods suggest the need for far more research and evaluation studieson the causes and outcomes of sustainable development in the UnitedStates.

Sustainability of Sustainable Real Property Development

The paper investigates commercial buildings users' perception of the benefits of green buildings and how this perception influences their decision to occupy and/or invest in them. A survey of 400 commercial real estate users in Singapore reveals that they are aware of, and appreciate the benefits of green buildings. However, they are not willing to occupy and/or invest in green buildings as they are concerned with monetary returns. Price, reliability, and effectiveness of green features, as well as apathy towards environmental issues, are impeding the sustainability of sustainable commercial real estate in Singapore. Notwithstanding, since it was found that cost saving and higher property value benefits statistically influence respondents' willingness to invest in, or occupy green buildings, turning the sustainability advocacy into realistic economic advocacy could ensure sustainability of sustainable real estate development.