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Poland not ready to go green

23rd December 2013
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An increasing number of developers apply for green certificates hoping to secure higher rents and prices, but the market still seems unprepared for a green revolution

Tenants and investors in Poland are still reluctant to pay higher prices for green offices. As many as 32 percent of those polled said they wouldn’t be willing to pay extra for a green building, while 57 percent said they could pay more, but only up to 5 percent, according to a recent report prepared by Construction Marketing Group, an initiative launched by advisories Buro Happold and Colliers together with Phillips. A marginal 2 percent would accept rent or purchase prices higher by more than 10 percent. 

Source: Construction Marketing Group

It is no wonder, then, that opinions were split as to the tangible benefits green buildings offer. While most respondents agreed that green buildings sell faster and at higher prices (60 percent and 68 percent respectively), only 24 percent said that sustainable buildings have lower tenant turnover and 52 percent of respondents agreed that they fetch higher rents.

Investors are still not convinced that sustainable buildings are exposed to lower investment risk. Almost a half of them said it need not be so, while 11 percent admitted that they simply didn’t know. For 94 percent of investors, changing tenant preferences have a strong influence on investment risk. As many as 88 percent of investors pointed to delays and 82 percent to legal changes as major contributors to investment risk. 

Source: Construction Marketing Group

Meanwhile, companies continue to build green, expecting the investment to bring returns in the form of lower maintenance costs (61 percent of all developers surveyed). Most of them (62 percent) said that sustainable schemes are on average 2-10 percent more expensive to build, mainly because they require costly technologies and building materials.

Beata Socha

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