Investing in Sustainability: Home buyers’ Growing Interest in Eco-friendly Homes.

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Achieving Sustainability in Real Estate: Why A Small Change Can Make A Big Difference

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The adverse effects of climate change have trickled down into various sectors, real estate being no exception.

According to data from the European Commission, the real estate sector accounts for 36% of CO2 emissions and 40% of energy consumption in Europe.

These facts have led experts to believe that the sector's mission should be to initiate decarbonization and adopt sustainable processes.

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Shifting Preferences Towards Sustainable Homes:

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Recent studies indicate that home buyers globally are becoming increasingly conscious about the environment and willing to pay a premium for sustainable homes. We take Spanish data as an example… a recent study conducted by 2 major players in the sector found that more than half (53.3%) of prospective home buyers would willingly pay extra for a property with 'green' conditions, viewing the additional cost as a wise long-term investment. This trend demonstrates the rising appeal of energy-efficient and environmentally-friendly properties.

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The Financial Benefits of Sustainable Living:

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The primary motivator for this shift is the significant reduction in utility costs that sustainable homes can offer. For instance, 44% of respondents in this study chose a more sustainable home due to the potential for lower energy bills. In essence, homeowners are beginning to realize that investing in eco-friendly properties is not just beneficial for the environment but also for their wallets.

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The Concept of Sustainability in Renting:

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Interestingly, the mindset towards sustainable living extends beyond homebuyers to renters as well. However, the willingness to pay extra for sustainable rental properties decreases, contingent on the overall rental price and its terms.

While the figures vary, it's evident that a growing number of people understand the long-term benefits of sustainable housing.

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Sustainable Habits for a Sustainable Future:

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It's important to acknowledge that achieving sustainability is not an overnight task. It's akin to building a new habit - difficult but not impossible. As James Clear’s model suggests (model on how to build atomic habits by making small changes to build better progress), focusing on the final outcome or goal may often seem overwhelming. But by creating a practical system that facilitates progress towards the goal of achieving a sustainable future.

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Embracing the Systems-first Mentality:

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Those who successfully embrace sustainable living have a 'systems-first' mentality. They focus on building effective strategies and routines that allow them to gradually reduce their environmental footprint and make their homes more energy-efficient. This approach not only creates a sustainable lifestyle but also makes the journey towards it more enjoyable.

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The Ultimate Goal: Sustainability in Real Estate

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It's evident that the shift towards sustainability is more than a passing trend; it's a fundamental change in how we perceive our homes and our role in combating climate change. As real estate developers and consumers alike recognize this, the demand for sustainable properties is bound to surge, paving the way for a more sustainable future.

Achieving sustainability in real estate and our daily lives boils down to adopting small, incremental changes that lead to big results. Just like atoms are the building blocks of molecules, these 'atomic habits' are the building blocks towards a sustainable future.

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Conclusion:

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In conclusion, the path to achieving a more sustainable real estate sector is hinged on the adoption of eco-friendly practices and a mindset shift towards a systems-first approach. By placing importance on the journey towards sustainability, rather than just the goal itself, we foster continuous improvement and long-lasting change. Both homeowners and renters are realizing the value of 'green' properties, not just for the environmental benefits but also for the financial savings. These 'atomic habits' are the building blocks to a more sustainable future, demonstrating that even the smallest changes can have a significant impact on our planet.

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Originally published on Globgain Group’s LinkedIn page