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Evidence mounts in financial favour of green design

A new study, commissioned by the Royal Institute of Chartered Surveyors (RICS), has found that there is a clear link between the market value of a property and its environmental friendliness.

The report, published today, also shows that green buildings can make money, given 'the greater productivity that green strategies bring'.

RICS chief executive Louis Armstrong said: '40 per cent of carbon emissions come from buildings. Finding incentives to make them 'greener' in design and operation is critical.'

The study also found that green buildings can earn higher rents and prices; can attract tenants and buyers more quickly; can cut tenant turnover; can cost less to operate and maintain and can benefit occupiers.

The report urges property industry groups, real-estate valuers, appraisers, the financial sector and the green building lobby to work together to identify and promote the hidden benefits of green buildings. This is so that their market value can become a 'serious consideration' for landlords, developers and investors.

Armstrong continued: 'This research shows that the interests of business and the environment can converge.

'The property and construction industries have a leading role to play in tackling climate change. This work shows that achieving real environmental benefits can also be profitable.'

by Rob Sharp

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