How ‘green’ is Phl’s PROPERTY industry

The country’s property industry is going through a major change, not just because of economic factors, but also because people have come to realize the importance of being environmentally responsible.

It used to be that sustainability was only a niche concern — now it’s becoming a top priority for developers, investors and homeowners.

This shift reflects a global trend towards creating a built environment that is more environmentally conscious. This places the Philippines in a great position to be advantageous of this growing demand.

“Real estate accounts for a significant portion of global carbon emissions,” Karina San Jose, a sustainability consultant for an architecture firm in Manila told DAILY TRIBUNE in a phone call.

Data from the World Green Building Council showed that 39 percent of global carbon emissions derive from the real estate sector.

Of these emissions, approximately 70 percent are produced by building operations, while the remaining 30 percent comes from construction.

“The Philippines, being an archipelago nation, is particularly vulnerable to the effects of climate change. Sustainable practices in property development are no longer a luxury, they’re a necessity,” San Jose said.

San Jose pointed out that sustainable practices in property development are no longer a luxury, but a necessity for building resilience and ensuring the longevity of the communities.

Real estate and investment management service provider Jones Lang LaSalle (JLL) said the number of certified green buildings in the Philippines has seen a compounded annual growth rate of 4.6 percent over the past five years, with office spaces leading the way.

Environmental, economic benefits

What exactly makes sustainable property development so valuable?

The advantages are multifaceted, impacting both the environment and the bottom line. Sustainability in real estate is driven by economic factors.

“Green buildings are designed to be energy-efficient,” Architect Jessa Soledad told DAILY TRIBUNE in another phone call.

“This translates to lower operating costs for residents and businesses, thanks to features like LED lighting, improved insulation, and even renewable energy sources like solar panels,” Soledad added.

Soledad also mentioned that sustainable buildings, with their advanced energy-saving technologies, offer substantial savings on utility bills.

Beyond energy savings, sustainable developments often incorporate water conservation measures, such as rainwater harvesting and low-flow fixtures.

It not only reduces strain on precious water resources but also lowers water bills for occupants.

“There’s a clear economic benefit to sustainability,” Soledad said.

“The initial investment in eco-friendly materials and technologies might be slightly higher, but the long-term savings on utilities and maintenance are significant,” Soledad added.

Changing market

The demand for sustainable properties isn’t just about cost-efficiency. A growing segment of Filipinos, particularly millennials and Gen Z, are prioritizing environmentally friendly living spaces.

“There’s a definite shift in buyer preferences,” Daniel Tan, a real estate broker specializing in condominiums, told DAILY TRIBUNE in another phone call.

“Younger buyers are increasingly asking about features like energy-efficient appliances, waste management systems and access to green spaces,” Tan added.

This trend aligns with global data. A Dodge Data & Analytics report revealed that 70 percent of millennials would be willing to pay a premium for sustainable features in their homes.

Data from JLL found that 72 percent of Filipino occupiers are interested in working in green buildings. Similarly, a survey by Santos Knight Frank revealed that a growing number of homebuyers consider low-density and green spaces for their next home.

This demand is being met by a growing number of developers incorporating sustainable practices into their projects.

LEED (Leadership in Energy and Environmental Design) certification, a globally recognized green building rating system, is gaining traction in the Philippines.

The number of LEED-certified buildings has grown steadily in recent years, with office spaces leading the way.

Gov’t incentives

The Philippine government is also playing a crucial role in promoting sustainable practices.

The Department of Energy’s Green Building Program provides incentives for developers who construct energy-efficient buildings.

Additionally, the national government has set ambitious climate goals, aiming to reduce greenhouse gas emissions by 75 percent by 2030.

Despite the challenges, the future of the Philippine property industry appears to be painted green.

With increasing environmental awareness, government support, and growing consumer demand, sustainability is no longer a niche concern but a core value proposition.

As the industry embraces greener practices, the Philippines can position itself as a leader in sustainable development, creating a future where economic growth and environmental responsibility go hand in hand.