[Kenya] Developers cut soaring construction costs by going green
The biggest headache for property developers over the years has always been the ever rising cost of building materials. But this does not always have to be the case when embarking on new projects as developers are now learning that going green is cheaper in the long run.
Studies show that adopting sustainable building principles and initial investment in construction projects through proper design can collectively help property developers save up to 50 percent of total building costs. According to Brian Gacari, the Chief Executive Officer or Property Reality, a local property development firm, there are three key principles to “going green” in the construction industry, all contributing positively to the environment, economy and society.
“Most of the savings that construction companies can potentially achieve from going green are realized through good design with minimal wastage of materials’, says Gacari.
He further notes that savings in operational costs of infrastructure are especially made through optimal use of water and energy.
Through good design, Gacari says, construction companies can limit the initial investment to 10-20 percent of the cost of the building, which is more than offset by the savings in operation and maintenance and could save 20-30 percent of operational costs.”
United Nations Environmental Programme (UNEP) declared 2012 the International Year of Sustainable Energy for All.
It is against this backdrop that local developers are seeking ways to cut down on energy costs by going green.
“Green building has became our focus since building consumes 14 percent of potable water, 40 percent of raw materials, and 39 percent of energy in the Kenya,” notes Gacari who is a founder member of Property Reality Limited that was formed in 2009 and is currently building Cape Gardens, a 125 housing unit along Mombasa Road.
As contained in the firm’s vision, Property Reality is capitalizing on ways to cut down on such costs and in the process make home ownership a reality to its customers at an affordable cost.
The firm says all its products are eco friendly adding that the trends of all developments worldwide are headed this way, and it would only make sense to incorporate these energy saving features which will make the running costs for the house occupants lower in the long run.
Gacari however, laments that the concepts of green building is yet to take root in Kenya but hopes that more property development firms will take the cue from Property Reality and the recently launched green building at the UNEP headquarters at Gigiri.
“World over there is the green craze, and green building is nature friendly and less costly. Green buildings save on energy bills creating a larger disposable income. Our company builds houses that target at the middle class income earners, who are now very conscious about the environment, so we have to put the environment in mind as we plan every stage of the construction,” asked Gacari.
According to George Wesonga, programme coordinator for The Civil Society Urban Development Programme (CSUDP) there is a variety of reasons for property developers to go green, but adds that it all comes down to supply and demand.
“We have a limited amount of resources available and more and more people using them up. If we want our future generations to enjoy the same standard of living we’ve experienced, we need to take action.” Says Wesonga.
The rising cost of construction materials has exposed property developers to intense financial pressures, with actors in the industry now saying many projects face threats of stalling. Property dealers expect this to impact on rental and sale prices across commercial and residential segments, which will likely affect uptake of supply. Material costs have climbed sharply since June 2011, pushing developers to review project costs upward at the risk of narrow margins.
