Application of Green Features in Property Valuation in Sri Lanka: Perspectives of Professional Valuers

Abstract

In the concept of sustainability, the green building plays a salient role in the path of achieving sustainability goals in the country. In line with that, RICS has also introduced RICS professional guidance to estimate the sustainability factors in the property. Moreover, there is an emerging trend in Sri Lanka to going green and now the financial sector is in the process of introducing new financial facilities for the buildings with green features. Hence, valuers as professionals who directly involved in the property market and provide a professional opinion on property value, can have a distinct impact in the context of green buildings. Accordingly, this study analyzes the perspectives of professional valuers on the application of green features introduced by the GBCSL in property valuation in Sri Lanka. The study was conducted as quantitative research and the data was collected through a questionnaire survey. The questionnaire was distributed among 100 professional valuers and 60 responses were collected. The collected data were analyzed by using descriptive analysis and mean comparison using Statistical Package for Social Sciences (SPSS) version 23.0. Findings revealed that most of the valuers have a moderate level of awareness and knowledge on green features and do not currently consider them in property valuation. A key challenge/barrier to consider green features in property valuation is the lack of proper guidelines and knowledge. Also, the importance of considering green features in property valuation is varied from different phases of the life cycle of the building and property types. As per the perspectives of valuers, 12 sub green features out of 18 were considered to estimate the value of a condominium and 7 sub-features were considered for commercial and office building valuation.

© 2022 The Authors. Published by Department of Estate Management and Valuation, University of Sri Jayewardenepura

Keywords: Green Building, Green Features, Green SL Rating System, Property Valuation