At the beginning of 2009, the owner of the Empire State Building unveiled his plan to “go green”. The world famous skyscraper was completed in 1931 in New York, USA. The Art Deco building is currently in the midst of a $500m renovation, where $100m of these funds are designated for the green initiative. The green renovations are expected to decrease energy expenditures by 38 percent or $4.4m annually (Jonas, 2009).
The example of the Empire State Building is not unique, since increased environmental awareness has affected nearly every industry. Companies across all industries and nations have launched green initiatives in order to improve their environmental performance and in response to the expressed concerns regarding their immediate environment. Currently, corporations compete to adopt and implement sustainable policies.
Particularly the role of the real estate industry in reducing the environmental burden is considered to be the most important, as this industry is one of the largest emitters of harmful chemical substances and a major user of natural resources (Nelson, 2007, p. i). However, it is not enough to consider only the ecological aspects of real estate. This is because real estate, as a commodity, has an enormous economical impact. Other dimensions including economic and social aspects must also be examined.
The term sustainability unites the three relevant dimensions. Over the last 20 years, bringing environmental protection to the same level as economic development and social concerns, sustainability has become a worldwide guiding principle. Sustainable development takes the future of mankind into account (Grunwald & Kopfmüller, 2006, p. 7). In the context of global challenges, sustainability means ensuring the addressing of future generation’s needs. In contrast to other industries, the real estate industry has been slow to develop sustainable practices. However, today, the idea of sustainability greatly influences actions and motivations associated with the real estate industry. Efforts to create sustainability in real estate are reflected in the names of a large number of the development of building labels, including Green Buildings, Sustainable Buildings, or Zero Emission Buildings. In Addition, more and more developers, architects, engineers, property owners, and lenders consider sustainability issues when planning, constructing, renovating, or living on property.
Table of Contents
1 Introduction
1.1 Problem Definition and Objectives
1.2 Course of Investigation
2 Fundamentals and General Framework
2.1 Megatrends, Sustainability, and Green Buildings
2.2 German Real Estate Industry
3 Factors of Green Building Movement
3.1 Global Change and the Need to act
3.2 Media, Policy, and Culture
3.2.1 Layers of implementation
3.2.2 Media and Public Relations
3.2.3 Culture
3.3 Impacts of Green Building on Economical, Ecological, and Social Factors
3.4 Legal Framework and Certificates
3.4.1 Germany’s Legal Framework
3.4.2 LEED
3.4.3 DGNB
3.4.4 National and International Norms
3.5 Demand and Barriers
3.6 Summary
4 The German Real Estate Market
4.1 Macro Analysis
4.2 Possibilities of Energetic Renovations Using the Example of an One Family House
4.3 Adaption to Existing Buildings
4.4 Past Trends
4.5 Future Implications
4.6 International Settlement
5 Conclusion and Future Work
Objectives and Core Topics
This thesis examines the role of the "green revolution" within the German real estate market. The primary objective is to analyze the key drivers and challenges of the Green Building movement, specifically focusing on the residential sector, to determine if sustainability is a viable factor of long-term value or merely a short-term trend.
- The impact of global megatrends (demographic change, climate change, urbanization) on real estate
- Evaluation of economic, ecological, and social factors of sustainable building practices
- Comparison of national and international certification systems like LEED and DGNB
- Analysis of the German regulatory framework and energy-saving acts (EnEV)
- Economic assessment of energetic renovations in existing residential housing
Excerpt from the Book
1 Introduction
At the beginning of 2009, the owner of the Empire State Building unveiled his plan to “go green”. The world famous skyscraper was completed in 1931 in New York, USA. The Art Deco building is currently in the midst of a $500m renovation, where $100m of these funds are designated for the green initiative. The green renovations are expected to decrease energy expenditures by 38 percent or $4.4m annually (Jonas, 2009).
The example of the Empire State Building is not unique, since increased environmental awareness has affected nearly every industry. Companies across all industries and nations have launched green initiatives in order to improve their environmental performance and in response to the expressed concerns regarding their immediate environment. Currently, corporations compete to adopt and implement sustainable policies.
Particularly the role of the real estate industry in reducing the environmental burden is considered to be the most important, as this industry is one of the largest emitters of harmful chemical substances and a major user of natural resources (Nelson, 2007, p. i). However, it is not enough to consider only the ecological aspects of real estate. This is because real estate, as a commodity, has an enormous economical impact. Other dimensions including economic and social aspects must also be examined.
Chapter Summary
1 Introduction: This chapter introduces the rise of sustainability in the real estate sector using the Empire State Building as a prime example and outlines the scope of the study.
2 Fundamentals and General Framework: This section defines core concepts like sustainability and Green Buildings within the context of global megatrends and introduces the German real estate industry.
3 Factors of Green Building Movement: This chapter analyzes the environmental, media, political, and cultural drivers of the movement, along with the legal framework and building certificates.
4 The German Real Estate Market: This section conducts a macro analysis of the German market, evaluates the feasibility of energetic renovations, and discusses past trends and future implications.
5 Conclusion and Future Work: This final chapter synthesizes the research findings, highlighting that while sustainability is critical, further long-term study is required to fully understand its economic impact.
Keywords
Sustainability, Green Buildings, German Real Estate, Energy Efficiency, Megatrends, LEED, DGNB, Energetic Renovation, Climate Change, Carbon Dioxide, Sustainable Investment, Real Estate Market, Regulatory Framework, Life-Cycle Costs, Urbanization.
Frequently Asked Questions
What is the core subject of this thesis?
The thesis investigates how global megatrends and the "green revolution" affect the German real estate industry, with a focus on sustainable building practices.
What are the primary themes discussed?
Key themes include the necessity of sustainable development, the economic and ecological impacts of Green Buildings, the role of government regulations, and the challenges of implementing energetic renovations.
What is the main goal of the research?
The study aims to identify the key drivers of the Green Building movement and to assess whether sustainability represents a genuine long-term value for the German real estate market.
Which scientific methodology is applied?
The work utilizes a combination of literature analysis, examination of regulatory frameworks, and an economic case study of typical one-family residential renovations to demonstrate feasibility.
What is covered in the main section of the paper?
The main section covers global environmental drivers, the influence of policy and media, a detailed review of international and German certification systems (LEED, DGNB), and a specific economic analysis of the German residential stock.
Which keywords define this work?
Key terms include sustainability, Green Buildings, energy efficiency, life-cycle costs, EnEV, LEED, DGNB, and the German real estate market.
How does the author view the "landlord-tenant-dilemma"?
The author identifies it as a significant structural barrier where landlords bear renovation costs while tenants receive the primary benefit, which slows the rate of energy-efficient retrofitting.
Why is there a lack of implementation of Green Buildings in Germany according to the interview in the appendix?
The interviewee, a real estate broker, suggests that in the current market, investors and sellers do not see high demand or rent premiums for "green" features, as the demand for conventional real estate remains strong and supply is limited.
- Quote paper
- Michail Farmakis (Author), 2010, Megatrends and Their Consequences for German Real Estate, Munich, GRIN Verlag, https://www.grin.com/document/151844
