Appraisal Report Green or Sustainable Development

Question: Discuss about the Appraisal Reportfor Green or Sustainable Development. Answer: Green or sustainable development is the process of meeting developmental goal by preserving the natural resource and ecosystem to sustain economical and social benefits from it. The concept of green economy or the sustainable development has been the ambitious goal of international community since the UN conference of 1992. The conference on Environment and Development called upon the government of different countries to develop policies and strategies for sustainable development. The implementations of these policies are challenged by issues of food and financial crisis and other ecological limits in different countries ("Green Economy : Sustainable Development Knowledge Platform"). The purpose of this appraisal report is to determine whether the concept of sustainable development can contribute to or retract from real estate values. It discusses the impact of sustainable development on real estate values to finally come to the conclusion of its positive or negative effect for real estate goals. The focus on green or sustainable development is high due to the clear scientific evidence on climate change and serious global risk caused due to adverse impact of climate change. Sustainable development is possible through certain themes like presence of a political system that promotes citizen participation in decision making, an economic system that generates surpluses on regular basis, a social system that prevent disharmony and a productive system based on ecological foundation of development (Ahi and Searcy). This entire motive can be successful only when an international system develops policies to modify the pattern of trade and the administrative facility takes flexible steps to preserve the natural ecosystem. The main impact of this sustainable development on real estate values can be seen from the research study by Zhang (2015) who analyzes the implications of green real estate development for reducing the impacts on environment and society. It gave positive implications of reforming real estate values by focus on environmental aspects of building properties. Sustainable development can add value to a property and the work on efficiency of a building helps to maintain and balance the resource needs of a growing population. In the field of real estate construction, the strategies employed for management of environmental resource can help to generate values for the property and use pricing techniques to gain maximum profit. The preservation of environment through taxation on negative environmental effects can go a long way in achieving the goal of sustainable development and bring change in resource allocation (Zorio et al.). Besides this value of a real estate property can be increased by the presence of a clear and protected property rights. The link between environmental policy and poverty alleviation can be strengthened by investment on energy efficient facilities in real estates. This initiative can promote the culture of sustainability among real estate investors (Veleva et al.). Another research literature investigated the relationship between sustainable development and property values in commercial real estate to get insight into feature that can enhance the valuation of property. A survey on perception of stakeholder in real estate industry showed that they support the importance of sustainable factors in property values and its direct relation with the expected financial performance of the property (Zao andZhao.). As the awareness of consumer regarding ill effects of climate change is increasing, they have begun to pay attention to Green mark certified building. Due to the social benefit evident in such buildings, this social benefit is also slowly translating to financial benefits for real estate business. In real estate valuation practice, the continued focus on sustainability features is needed to transform into a society with holistic development (Edwards and Naboni). Hence, high prioritization of sustainability in real sector is necessary to achieve a balance between economy, environment and society. The value of buildings and properties which reflects sustainable development is going on increasing because design and management of such building has played a vital role in reducing the impact of construction on environmental resource. Greater awareness among the investors regarding the issue of sustainability will bring target countries closer to the realization of sustainable development goals. A building construction lead to energy consumption, water usage, raw material consumption and generation of solid land fill waste. This creates a lot of ecological imbalance in the affected areas (GhaffarianHoseini et al.). Although real estate sector fail to understand this, but those who makes progress in building design and construction techniques are appreciated for their actions. This comes in the way of word-of-mouth praise as well as financial benefit. The range of benefits of green building and construction for real estate sector is that it has helped to reduce operating cost, promo te CSR (corporate social responsibility initiative), increase productivity and retain new tenants. Therefore, sustainable development approach in real estate sector is market-driven and this approach has great financial viability in real estate too (Berardi et al.). The analysis of the economics of green building reveals that the increase in green development and unpredictability in property market has not affected the values or return in investment of real estate. It gives the indication that any form of investment in energy-efficient building can contribute to the values of real estate and getting premium rents in lieu of the sustainability features in building (Eichholtz et al.). Therefore, green building can fully contribute to the rent and asset values in real estate business. From the detailed appraisal report evaluating the impact of green or sustainable development on the real estate values, it can be concluded that building construction with a focus on sustainable development has contributed to the value of real estate. It has helped real estate sector to balance environment, society and financial goals and achieve sustainable development goals. The essay discussed the key themes of sustainable development and the method through which sustainability initiative can be implemented. Furthermore analysis of recent literature regarding the impact of sustainable development on real estate valued revealed that this strategy is useful for realization of financial goals in real estate business as well as exhibit the corporate social responsibility in business. With the increase in stakeholder awareness of sustainability issues, the design and construction of green building is getting value for its efforts and they are also being appreciated for the realization of negative impact of construction on environment. Due to this realization only, they are coming up with new construction design and raw materials in the construction phase. Reference Ahi, Payman, and Cory Searcy. "A comparative literature analysis of definitions for green and sustainable supply chain management."Journal of Cleaner Production52 (2013): 329-341. Berardi, Umberto, AmirHosein GhaffarianHoseini, and Ali GhaffarianHoseini. "State-of-the-art analysis of the environmental benefits of green roofs."Applied Energy115 (2014): 411-428. Edwards, Brian W., and Emanuele Naboni.Green buildings pay: Design, productivity and ecology. Routledge, 2013. Eichholtz, Piet, Nils Kok, and John M. Quigley. "The economics of green building."Review of Economics and Statistics95.1 (2013): 50-63. GhaffarianHoseini, AmirHosein, et al. "Sustainable energy performances of green buildings: A review of current theories, implementations and challenges."Renewable and Sustainable Energy Reviews25 (2013): 1-17. "Green Economy .:. Sustainable Development Knowledge Platform".Sustainabledevelopment.Un.Org, 2017, https://sustainabledevelopment.un.org/topics/greeneconomy. Veleva, Vesela, et al. "Understanding and addressing business needs and sustainability challenges: lessons from Devens eco-industrial park."Journal of Cleaner Production87 (2015): 375-384. Zhang, Xiaoling. "Green real estate development in China: State of art and prospect agendaA review."Renewable and Sustainable Energy Reviews47 (2015): 1-13. Zorio, Ana, Maria A. Garca?Benau, and Laura Sierra. "Sustainability development and the quality of assurance reports: Empirical evidence."Business strategy and the environment22.7 (2013): 484-500. Zuo, Jian, and Zhen-Yu Zhao. "Green building researchcurrent status and future agenda: A review."Renewable and Sustainable Energy Reviews30 (2014): 271-281.