Bulgarian Property
Property Services
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Green building in Bulgaria
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04.02.2008
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Bulgarian real estate has reached a certain moment when the industry has virtually no choice. Sustainable development is not only a concept or trend but is imposed by every factor connected to it. Growing costs for resources, climate changes, legislation, social responsibility requirements - all these factors put developers in Bulgaria before a fait accompli: in the years to come the construction of buildings with the thought for the consequences for nature will be a market reality.
More and more attention is focused not only on the quality and comfort in Bulgarian buildings but also on its operational costs and environmental impacts. In competition, except for the triple rule for location, along with price and technological specifications of the Bulgarian property, which are becoming more and more a standard, an increasing environmental quality will be increasingly important: how much energy and water the building uses, from what sources they come, how is waste managed, what environment it creates for its occupants.
In Bulgaria, where the green color in real estate is associated with some grass in the neighborhood or planting a few trees, these changes will become a fact soon even if developers are still not ready to adopt them. Sustainable development is a special policy for European politicians, and will become more and more purposeful line for business and investors also.
Corporations are very quick to find out that property they use has very strong influence on the field they operate in.
More and more shareholders go for green investment product. Investors start targeting assets that guarantee sustainable development.
The trend of green buildings in Bulgaria is already a fact. The number of this type of investments grows very fast.
"This is the snowball effect - when you can see it is too late as then you will have to catch it up", explains Sinisa Stankovic, Managing Partner of BDSP Partnership, a British consulting company specialized in design of ecological, sustainable and energy efficient buildings. Stankovic who has worked on Norman Foster's Gherkin, the iconic London building that uses half of the energy needed for an equivalent traditional office structure, says that in the next ten years to come green buildings will be the only one to be developed in Europe.
Meanwhile, the Gherkin was sold for GBP 630m (over EUR 910m) making a profit of GBP 250m on development cost. Of cource, besides obvious main factors as its unique location in the heart of the City and the price surge in a several consecutive years, its architecture and technological qualities were also influential in making it one of the most expensive properties to rent, which was again included it its sale price.
Scientists' analyses show that if the carbon dioxide emissions are decreased by 1% it will mean 60 million tones less carbon dioxide in the atmosphere. The polluted air is in the major problems in big cities, among which is the Bulgarian capital.
Except for the decrease of the energy and maintenance expenses green technologies cut down health expenses of the employees, raise their productivity and increase their work availability
Why should a building be green?
Meeting the sustainable development standards increases the market value of a building up to 10% in return for a 2-percent increase of costs to build it.
"These extra costs are a result mainly of the lack of enough knowledge in similar projects", says Atanas Garov, Managing Director of Colliers International Bulgaria. "Early planning and foresight of the needed resources for every construction stage would reduce costs and thus will attract more experts in the development of the sector."
Except for the decrease of the energy and maintenance expenses green technologies cut down health expenses of the employees, raise their productivity and increase their work availability. There are also serious non-financial positive effects of the energy efficiency technologies-an increasing number of corporate clients search exactly for green buildings and the market values of such projects are getting higher. Using a model based on a class A office building of 30,000 sq m area in Sydney it has been evaluated that a EUR 200,000 investments in green technologies increases the market value of the building by almost EUR 2m, says global consultant Jones Lang LaSalle in its report Sustainability 101 of June this year.
The legislation
According to the plans of the European Union, by 2020 greenhouse gas emissions on the Old Continent should be reduced by 20% and by 2050 - by 50%. Sinisa Stankovic is skeptical: "I do not say it is impossible but by now there are just no substantial changes to meet these expectations". He adds most of the necessary requirements are still on paper.
The trend of green buildings is already a fact. The number of this type of investments grows very fast. "This is the snowball effect - when you can see it is too late as then you will have to catch it up, explains Sinisa Stankovic, Managing Partner of BDSP Partnership, a British consulting company specialized in design of ecological, sustainable and energy efficient buildings
Despite that efforts in this direction are tangible. In some EU countries there are laws under consideration, which will create particular obligations for the developers.
For instance in Spain, from 1st of January 2008 every new building should consume 25% less energy. Along with that from 2011 in all EU countries introduction of building standards -Eurocodes including requirements for operation and efficiency - is planned. In some countries there is already an operative EU directive for the energy operation of buildings. According to the directive, certificates are issued for both energy operation and energy efficiency. "Investment in getting certificate for sustainable development is an acknowledgement that the building meets certain standards, which investors demand", says Peter Hildersen from Jones Lang LaSalle.
In competition, except for the triple rule for location, along with price and technological specifications of the Bulgarian property, which are becoming more and more a standard, an environmental quality will be increasingly important
Green technologies are good for investors, shareholders, tenants, nature, and for the future...
According to a survey conducted by Jones Lang LaSalle, 65% of all investors say sustainable development is key factor for the bulgarian real estate sector and they are ready to invest some extra money in green technologies. Answers show that more than half (51%) of the interviewed are ready to pay between 1 and 5% more for sustainable bulgarian real estate development and 12% are ready to invest more than 10% more in such technologies. The survey showed that even if a major part of investors had been ready to invest extra money in energy efficiency facilities, the general opinion was that access to such technologies is very limited. About 49% thought that only some markets provide the needed supply, while 44% complain of the limited access.
The survey showed that even if a major part of investors had been ready to invest extra money in energy efficiency facilities, the general opinion was that access to such technologies is very limited
The survey also says one of the crucial issues is the lack of enough qualified professionals for the development of sustainable technologies. Only 5% of all interviewed qualify construction companies as professional, hardly 7% say the owners are professionals and only 14% point developers. The only ones who have won the confidence of the inquired are architects and designers with 51.2% and 44.2% respectively.
What is a green building in Bulgaria?
The most widely used definition is a building designed, built, managed and used in order that its impact on its environment is reduced to the maximum. To achieve this are needed changes in design, building components and an adequate management of the whole process.
The criteria are:
- Reduced production of carbon dioxide and other greenhouse gas emissions
- Reduced water, gas and electricity consumption
- Reduced waste production
- Reduced use of precious natural resources
- Reduced environmental footprint
- Production of renewable resources
Reference: Index Imoti Magazine
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