Sustainability
Sustainable and inclusive property markets depend on the ability of everyone to participate on equal terms and of analysts, advisors, and regulators to responsibly intermediate between inevitable cycles of boom and bust. Risk management systems need to be in place to help mitigate after market downturns.
Persistent inequalities, armed conflicts, and environmental disasters call for a renewed emphasis on how property markets around the world are interconnected and hold the key to addressing multiple crises. With the right actions, viable property markets can drive equitable economic development and growth, democratic empowerment, and environmental sustainability.
Real estate intersects with all 17 UN Sustainable Development Goals and is a key driver of jobs that provide decent work and economic growth for a broad spectrum of the community (SDG 8). Real estate organizations support continuing education (SDG 4) and promote gender equity (SDG 5). Forward-thinking city design can reduce potable water consumption (SDG 6), introduce urban farming and reduce food waste (SDG 3), and continue the transition to clean energy (SDG 7).
MEASURE
Measure sustainability of real estate in your country.
Consult the country Scorecards that have been developed or use the Appropriate Regulation section of the Scorecard methodology to develop or update that part of the Scorecard for your country.
International Resources
OECD and the Sustainable Development Goals: Delivering on Universal Goals and Targets
Country and Local Sources
Each country has organizations that are working to support sustainability issues such as:
Compile the resources for sustainability in your city, country, and region.
Survey Questions
Use these questions in interviews or roundtables with local stakeholders to get an idea of SMEs understanding of sustainability:
- What risk management mechanisms are in place for property markets, including insurance and government backstop programs?
- What innovations are underway in resource diversification in property markets, including new building materials and design, energy transformation, and disaster preparedness?
- How can business and real estate organizations work together with developers to include community amenities in their planning and development of new projects?
Identify key issues in sustainability and choose one or two issues to address with SMART goals:
- Specific – choose goals that are simple, significant, and likely to make a difference.
- Measurable – set a metric, e.g., develop sustainability guidelines for property managers.
- Achievable – keep the goals within the realm of your organization and influence.
- Resourced – what time and money will be dedicated to achieving the goal?
- Time Defined – set a time for the goal to be achieved.
COLLABORATE
Property markets begin with land use policy, then extend to housing, and as communities grow, commercial development. Today, most cities lack a coherent growth plan and are often playing catch up as development happens without the transportation and other infrastructure to support sustainable growth.
Informal development predominates many cities because there is little urban planning. The Burnham Plan of Chicago from 1909 envisioned the growth of the city for the next 100 years. The Burnham plan is still largely followed today.
The plan included six categories:
- The improvement of the lake front.
- The creation of a system of highways outside the city.
- The improvement of railway terminals, and the development of a complete traction system for both freight and passengers.
- The acquisition of an outer park system and of parkway circuits.
- The systematic arrangement of the streets and avenues within the city to facilitate movement to and from the business district.
- The development of centers of intellectual life and of civic administration, so related as to give coherence and unity to the city.
Identify key stakeholders including potential partners and supporting organizations that will also benefit from better risk and resource management.
- Find out what economic development plans exist in your city.
- What incentive programs are in place, if any, for retrofitting and redeveloping old buildings rather than demolition and reconstruction?
- Confirm the key issues and improvement goals.
- Develop an ongoing Stakeholder Engagement Plan, e.g., “Stakeholder will meet twice a year to review progress and set new goals and targets.
Bogota Case Study
In Bogota, Colombia, there are many battles for women to fight, but to do so, they must start from a home that can support them in finding work, caring for others, and escaping domestic violence and internal armed conflict.
The city designed and implemented a portfolio of housing solutions for low-income households (equal to or less than USD 495 per month) and vulnerable households, in the form of rental, purchase, improvement, and progressive housing. The program included a financial literary program, a community center that provided day care services so women could work to provide a second income to the family, health care service, and other wrap around services so that women have a set of tools to access decent housing and hope for the future for themselves and their families.
The Colombian National Government Program helps people improve or upgrade their homes by supporting homeowners through financial assistance and subsidies. The program aims to enhance living conditions by making home improvements more accessible and affordable.
In Bogotá, Gender Equity Is All Part of the Plan
Bogotá, Colombia is integrating gender equity into its urban planning and development strategies. The city’s approach involves a comprehensive plan that incorporates gender considerations into various aspects of urban life, such as public spaces, transportation, and housing. By addressing issues like safety, accessibility, and representation, Bogotá aims to create a more inclusive and equitable environment for all residents.
Hawaii Case Study
Kahauiki Village is a permanent supportive housing community for formerly homeless households. Using an extraordinary adaptive reuse scheme, the core of each residence is remodeled from the emergency modular homes built for the Tohoku, Japan tsunami victims by System House, formerly known as Komatsu, from donations by the people of Hawaii.
Once the Tohoku families were able to move to their new homes, the modular homes were disassembled and shipped back to Hawaii. Designated areas for vegetable gardens and fruit trees offer economic relief for resident families and encourage food sustainability.
Common areas for social service programs and recreational activities are available to provide on-site treatment and encourage fellowship and shared experiences. An integrated photo-voltaic system with gas provides all residents’ energy needs.
With key stakeholders, partners and supporting organizations:
- Meet with architects, city planners, real estate developers, and community organizations to understand each organization’s mission and current plans and activities.
- Host joint events and develop joint committees to focus on sustainable and equitable city development.
International Resource
C40 – a global network of mayors of the world’s leading cities
ADVOCATE
Together with the above groups, develop a shared Action Plan for the city’s future development including:
- More housing of more types for people at every income level, including mixed-use buildings that include housing, workspace, and retail shops.
- Permanent supportive housing for the homeless.
- Inclusion of business groups in city planning.
- More support for public and active transportation infrastructure – more frequent and varied bus and train options, protected bike lanes, wider sidewalks for walking.
- More open public and green spaces for healthier lifestyles.