The Benefits of Investing in Eco-Friendly Property
Every business, including real estate, is prioritising sustainable practices. In an attempt to ‘rebuild greener’ after the pandemic, by 2050, the goal is to achieve net-zero carbon emissions. As a result, green investing and eco-friendly property continues to rise on the real estate agenda.
There’s no denying that today’s renters are more ecologically conscious than previous generations. Sustainability is a trending topic these days, and it extends to real estate too. Consequently, investors are taking note of the upsurge of interest in eco-friendly property. Also, as the government announced their ‘Green Homes Grant’, it’s clear that investing in eco-friendly property is a prosperous investment opportunity.
What is an eco-friendly property?
Every aspect of an eco-friendly property is built with sustainability in mind. They prioritise eco-friendly materials without having to compromise on quality. These ‘green,’ ‘sustainable,’ or ‘eco-friendly’ properties are built with sustainable materials. They are also designed to produce a minimal amount of carbon emissions. As one-third of global CO2 emissions are linked to the real estate sector, it is clear that sustainability is an important factor that can improve the value of your investment.
Eco-friendly properties are not only sustainable, but also practical. Outgoing costs are lowered thanks to the green materials they use. They have specific design features such as triple-glazed windows, solar panels, renewable heating, and rainwater harvesting that decrease emissions and lower the carbon footprint.
Why should I invest in eco-friendly property?
Aside from doing your bit to help the environment, there are many additional reasons why an eco-friendly property is a great investment opportunity.
- The demand is high
73% of millennials are willing to pay extra for an eco-friendly property, according to research by Nielsen. This is clear in buyer trends outside of real estate too. Millennial customers across the UK are paying more for everyday items that are cruelty-free, sustainable, or organic. This is because society is beginning to realise the importance of making sustainable choices. Demand is already high, and it will only get higher.
Aside from any environmental morals, eco-friendly properties are also more affordable in the long term. One of the most significant benefits of all eco-homes is the reduction in water and energy costs, thanks to high levels of energy efficiency. The installation of renewable energy systems massively reduces the cost of running your home. This is a huge selling point for eco-friendly properties.
- Long-term security
An eco-friendly property is an example of a property that will stand out. Therefore, investors can rest assured their money will achieve capital growth over time. It’s more important than ever to cater to tenants needs, as demand continues to exceed supply. It’s clear that the younger generation, who make up the majority of the rental market, value sustainability. Therefore, providing the foundations of a prosperous investment.
Despite eco-friendly properties being more costly, they are of much higher quality. Investors commonly opt for a cheaper property for a higher ROI. However, there is value in choosing quality over cost. Newly built, eco-friendly properties will attract higher-paying tenants over time. Especially as demand continues to increase.
Leeds has several exciting new eco-friendly projects in the pipeline. The most significant being Citu Home – a game-changer in the fight against climate change. Housing over 700 people, the property will be completed in 2022. The eco-property will be the UK’s largest urban sustainable development project, costing £250 million. The bold, contemporary design is built entirely of renewable materials such as wood and recycled glass. Because the materials retain heat so well, heating costs are essentially non-existent meaning the property is met with 100% renewable energy.
Not only that, but the new South Bank scheme will also see the development of Holbeck Urban Village to create The Ironworks. The Ironworks will consist of 68 new, energy-efficient apartments, townhouses, and penthouses. These exciting developments will attract a lot of capital investment, making Leeds a great city for your first eco-friendly investment.
Manchester is also a pioneering city when it comes to investing in eco-friendly property. One prime example of a property built with sustainability in mind is Ancoats Gardens, located in the heart of Manchester city centre. The property features cutting-edge low-carbon technologies and has won prestigious, national awards for its ecological design.
For more information on Ancoats Gardens, you can view the property here.
Eco-friendly properties are going to increase in demand as more and more people become aware of their carbon footprint. Eco-friendly property will undoubtedly rise in value over time. The concept of sustainable living is relatively new. Therefore, investors should consider climbing onto the ladder as early as possible.
If you find new-build, eco-friendly properties are out of your budget, it is still worth investing in areas that are undergoing eco-friendly regeneration. The development of properties such as Citu Home will make the city much more attractive to global investors and businesses. Thus, being a huge contributor to the prospective growth of the area and increasing rental demand over time. Therefore, cities such as Manchester and Leeds provide prosperous investment opportunities, regardless of whether you chose to invest in an eco-friendly property or not.
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