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Sustainable Development : Demystifying the Costs of Green Construction

Green construction has often been seen as an expensive alternative to traditional building practices. However, a recent study by the US Green Building Council reveals that LEED-certified buildings can reduce operating costs by up to 20% over their lifespan. This figure shows that sustainable construction is not just an investment in the environment, but also a financially viable strategy for owners and developers. In this article, we will demystify the costs associated with green building, explore the long-term savings and benefits it offers, examine the importance of certification, and analyze current market trends through a case study.

Debunking Green Building Myths: Understanding the Costs! 

Common Myths:

  • Green construction is prohibitively expensive : Contrary to popular belief, the initial costs of green building are only 0 to 2% higher compared to traditional construction, according to the World Green Building Council. The increase is explained by the choice of more eco-friendly materials or the implementation of sustainable technologies. This slight increase is offset by significant long-term savings, notably through the reduction of operational costs, which can reach up to 20%.

  • Only new buildings can be green : Another widespread myth is the idea that only new projects can benefit from sustainable building principles. In reality, existing buildings can be effectively renovated to improve their energy efficiency and durability.

  • Ecological standards are too complex to implement : Many believe that complying with green building standards is too complex or involves complicated processes. However, with the right planning and partners, integrating sustainable practices can be as straightforward as any other construction project. Additionally, the assistance and guidelines provided by certification bodies or experts facilitate the understanding and application of sustainability standards.

  • Sustainability is just a fad : Some view green construction as a passing trend. Yet, the climate emergency and the increasing demands of consumers for environmental responsibility are turning sustainable building into a long-term necessity rather than a mere craze.

By confronting these myths with reality, it becomes clear that green construction is not only achievable but also beneficial in the long run. The initial challenges may seem daunting, but the enduring benefits and generated savings prove that these early efforts are worthwhile.

Long-term Savings and Benefits

Green construction stands out for its potential to generate significant savings and offer various long-term benefits that often exceed the initial investments.

Reduced operational costs : Green buildings, thanks to their energy and water-efficient design, can lead to substantial savings. For example, according to a report from Smart CRE cited by, green buildings can achieve energy savings of 25% to 50% and reduce water consumption by 10% to 40%, leading to significant reductions in operational costs. Moreover, they can also decrease maintenance costs by about 12%, resulting in a return on investment that can reach 40% over the lifespan of a building.

Improved health and productivity : Better indoor air quality and increased exposure to natural light in green buildings can lead to improved health and increased productivity of occupants. A study reported by FMLink showed that employees working in green buildings are 16% more productive than those in traditional buildings. This improvement can result from factors such as better indoor air quality and increased access to natural light.

Increase in property value : Eco-friendly buildings often have a higher market value due to their energy efficiency and low operating costs. A study conducted by Build It Green and funded by PG&E revealed that green-certified homes in Northern California sold for a higher price (2.19% more expensive), illustrating the growing appeal for sustainable living and working spaces.

Environmental contributions : Green buildings significantly contribute to reducing the overall ecological footprint by minimizing energy and water consumption and reducing waste. Green construction substantially lowers carbon emissions, with a green building reducing greenhouse gas emissions by 30 to 50% compared to a traditional building, thus contributing to mitigating climate change. Moreover, the use of sustainable materials and waste reduction help preserve natural resources and reduce the environmental impact of buildings.

These points highlight the tangible benefits of green construction not only in terms of financial savings but also for health, productivity, and the environment. The slightly higher initial investment is quickly compensated by long-term savings and overall benefits.

The Value of Certification and Reputation

In the world of green construction, certification is not just a badge of honor; it represents a deep commitment to sustainability and efficiency. Labels like LEED, BREEAM, or EDGE are not just badges; they reflect rigorous design and execution, aiming to reduce environmental footprint while maximizing occupant comfort and health.

This commitment to sustainability directly translates into the company's or property developer's reputation. In an increasingly environment-conscious market, a strong reputation in sustainable construction can prove to be a significant competitive advantage. Clients, investors, and partners tend to gravitate towards companies that share their values, and a recognized certification serves as tangible proof of this commitment.

From a financial perspective, this certification can also directly influence property value. As previously mentioned, studies have shown that green and certified buildings can sell at higher prices and attract tenants more quickly than their uncertified counterparts. Furthermore, green buildings tend to register higher occupancy rates and longer lease durations, translating into increased revenue stability for owners. A study by the AIA indicates that LEED-certified buildings have an occupancy rate 4.1% higher than non-certified buildings, and buildings with the Energy Star certification display an occupancy rate 3.6% higher.

In summary, certification is not just an investment in the environment; it is also an investment in the financial future and reputation of the company. It acts as a value driver, both in the real estate market and in the overall competitive landscape, reinforcing the company's position as a responsible and innovative leader in its sector.

Market Trends and Case Study

The green construction sector is constantly evolving, driven by innovation, regulation, and an increasing demand for sustainability. The focus on carbon emission reduction, water conservation, and quality of life improvement propels the sustainable construction market to new heights.

Recent trends indicate a significant increase in the adoption of green technologies and sustainable construction practices. Advancements in eco-friendly building materials, renewable energy systems, and energy efficiency solutions continue to transform the industry. Furthermore, governmental regulations and financial incentives are increasingly favoring green projects, encouraging developers to adopt sustainable practices from the design phase.

Moreover, the real estate market is starting to recognize the added value of sustainable buildings. Data shows that green properties attract tenants more quickly, generate higher rents, and have higher occupancy rates than non-sustainable properties. This trend is bolstered by a growing awareness among tenants and buyers, who value healthy and environmentally friendly living and working environments.

A notable example in the field of sustainable construction is the Paharpur Business Center (PBC) in Delhi, India. It stands out as an excellent example of healthy and ecological renovation in a 30-year-old commercial building. Known for its sustainable practices, the PBC is the first project in India to receive Platinum certification from the Indian Green Building Council.

This business center, which houses 250 employees from small and medium-sized businesses, has adopted a range of sustainable strategies to improve the work environment and promote occupants' health. Among these initiatives are the introduction of over 5,000 indoor plants to purify the air, the use of electrostatic, carbon, and HEPA filters to eliminate particles and allergens, and the monitoring of drinking water quality. Furthermore, the center collects feedback from occupants to improve physical conditions such as light, temperature, and cleanliness, and offers incentives for a healthy lifestyle.

The success of the PBC is measured not only in terms of employees' health and well-being but also through energy efficiency savings. Since its conversion to a green building, the PBC has achieved a significant reduction in energy consumption. Investments in energy improvements have led to a reduction of more than 60% in energy consumption, resulting in significant annual savings. According to the USGBC, a 30% reduction in PBC's electricity bills is estimated.

Implemented Measures


Replacing fluorescent lights with LED lights

50-55% energy savings

Replacing CFL spots with LED spots

60-62% energy savings 

Installing 25 motion sensors

60-62% energy savings 

Condensate recovery process

1500 liters of water and 4 kW of energy saved per day

Replacing fluorescent tubes with natural light wells

17.76KW saved per day

Return on investment < 5 years

Integrating the Indoor Air Quality (IAQ) system with the Heating, Ventilation, and Air Conditioning (HVAC) system

10% reduction in energy costs

Setting the air conditioning system's set point to 25°C

15% reduction in HVAC load

Building Management System (BMS)

Return on investment 8-14 years

Light-reflective paint

Heat-reflecting tiles 

60-62% energy savings


The notion that green construction is expensive is outdated. The example of the Paharpur Business Center (PBC) project reveals that ecological buildings can bring significant savings and enhance the well-being of occupants. The initial investment, often slightly higher than that of traditional construction, is quickly offset by substantial reductions in operational costs and a positive impact on both the environment and human health.

Environmental certification goes beyond a mere label, it enhances property value and solidifies the reputation of companies, thus meeting current environmental requirements. The ever-evolving sustainable construction market demonstrates that adopting green practices is not a trend but a necessary evolution, beneficial for all. Investing in green is thus a wise strategy for the future, ensuring long-term benefits for the planet, people, and profits.

Interested in implementing a green strategy in your buildings? Contact us! 


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