Philippines’ green building sector is on the rise as a global trend. Green buildings are becoming a critical part of the country’s ecosystem, where 22 buildings in Makati and Bonifacio Global City (BGC) are applying for the Green Building certification. Over 75 percent of these green buildings are located in BGC in Taguig, Philippines.
Benefits of green buildings
According to Michael McCullough, Managing Director of KMC MAG Group, building a healthier workplace for occupants and increasing savings and cost-efficiency in the building are just some of the benefits in green building development. He added that green buildings use 25-percent less energy. This allows organizations to save up to 19 percent on operational expenses and have an average increase in return of investment of about 19.2 percent.
In this time of era, developers can no longer look at green buildings as a premium offering. Developers need to look at green building as a key component of their future strategy. Developers need to consider that green building concept can be applied to lower-end offerings so that multiple customer bases will receive benefit from sustainable spaces. Making green buildings as a norm is an important step for the real estate and construction industry, which in the long run encourages the country to further pursue sustainable development.
Another benefit is that green buildings tend to become more attractive to multinational companies – which are increasingly looking for spaces that will reflect their own sustainability commitments. Meanwhile, developers have the ability to command higher rental rates for green developments.
Redevelopment for the office market
Redevelopment will drive the future of the office market in the Philippines. This includes upgrading older buildings into newer sustainable ones. Redevelopment can help increase asking prices, especially for buildings located in high demand central business districts (CBDs) and Makati CBDs. As an example, the Jaka Tower on Ayala Avenue is currently redeveloped into a strata-type office building and will be renamed the Alveo Financial Tower.
McCullough stated that redevelopment will help the building sector revive and will make it more attractive to organizations and businesses looking for spaces in high demand business districts. Redevelopment will also increase the value of surrounding properties, and it will be a way for the Makati CBD to stay competitive as emerging business districts.
Growing demands for the office and housing space as urbanization rate reaches a higher level are urging architects, developers, and...