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Growing Awareness Supports Growth in the South African Green Buildings Market Finds Frost & Sullivan - In response to the effects of the built environment on the environment, builders are increasingly seeking to design and implement green practices
Growing Awareness Supports Growth in the South African Green Buildings Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/07/19 - In response to the effects of the built environment on the environment, builders are increasingly seeking to design and implement green practices.

   
 
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Additionally, companies seeking to enhance their corporate social responsibility and market differentiation find that green buildings provide a unique avenue to meet the expectations of their socially-aware stakeholders.

New analysis from Frost & Sullivan (buildingtechnologies.frost.com), South African Market for Green Buildings, presents current trends in the green building industry and the ways in which manufacturers of green building technologies can take advantage of opportunities that are expected to arise within the market. In this study, Frost & Sullivan's expert analysts thoroughly examine the following market sectors: energy, water and building materials.

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The South African market for green buildings still faces several teething problems," says Frost & Sullivan programme manager David Winter. "These include a common misconception of the costs involved in green design and construction, as well as an overload of green information."

These challenges are not likely to act as constraints for long, as consumers' environmental awareness and interest is rapidly increasing. Additionally, corporate tenants and residential homeowners alike are demanding green initiatives in the design, construction and operation of buildings.

Many multinational companies operating in South Africa are headquartered in countries where green building is a necessity and are mandated by their executive boards to operate within green buildings, stimulating demand for green properties in South Africa.

"A measure of green building market awareness is gauged by the number of companies applying to a green building council for membership," says Winter. "The Green Building Council of South Africa has experienced a membership growth rate of over 100 per cent per annum since it opened for membership in May 2008, and is expected to continue to grow for the next few years as the market develops."

The council's targeted marketing campaigns and annual symposiums aim to educate consumers within the built environment, particularly corporate tenants. However, in spite of the upswing in the general awareness of the market, South Africa lacks the policy, legislation and financial support that impel companies to adopt green practices over the entire lifecycle of a building.

"International markets that have achieved rapid and sustained growth have done so on the back of significant legislative influence that requires companies to comply with green building standards," Winter explains. "They have also been motivated by rebates and discounts to adopt green initiatives."

Currently, South Africa only has the South African National Standards (SANS) 204 building codes for energy efficiency, wherein compliance is voluntary. These codes are expected to be introduced into the National Building Regulations during 2010, requiring all new construction projects to meet a minimal level of energy efficiency. However, the Power Conservation Programme proposed by Eskom will be a welcome initiative.

"While the effects of both of these initiatives will have a positive effect in the long run, the lack of large-scale legal application mandating green building practices will continue to restrain the market for the next few years," notes Winter.

Despite this lack of legislation, the demand for green building practices and initiatives will accelerate the development of the market in South Africa. Increasing demand for rated green buildings is also expected to encourage more end users to adopt green initiatives.

Supplier participation in the design and construction of the initial stock of rated green buildings is not only important for establishing the supplier's brand and commitment to green practices, but also for harnessing a sizeable market share.

"In a market where end users are overwhelmed by green building information and underperforming products and services, involvement in highly publicized early adoption products is likely to attract end-user trust and, consequently, enhance revenue growth," observes Winter.

South African Market for Green Buildings is part of the Building Management Technologies Growth Partnership Services program, which also includes research in the following markets: South African Facilities Management Market, South African HVAC Market and South African Lighting Controls Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

South African Market for Green Buildings / M570

 
 
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Growing Awareness Supports Growth in the South African Green Buildings Market Finds Frost & Sullivan

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