Real estate and sustainable construction: private perspectives for progress in energy regulation of a liberalised market

Abstract

In real estate markets such as Santiago de Chile where energy efficiency certificates are not mandatory, incorporating solutions that respond to the growing demand for sustainability entails a natural tension between their acceptance as necessary measures and the way they are addressed by the market. Under this mechanism, the market has introduced housing features that are communicated individually through real estate marketing. Energy efficient elements are more commonly seen in higher-end homes, where they are treated as standard features, while they are still considered innovations at the lower end of the housing market. However, it has been shown that energy efficient features decline in relative importance over time, ceasing to be considered marks of distinction. In contrast, energy efficiency certification shows great potential for generating a proposal to create sustainable value over time, particularly due to its ability to objectively communicate a buildings’ energy performance. This suggests that this model should be reviewed from a public policy perspective, with the understanding that the current voluntary standards must compete with other features, in addition to improving the minimum required standards.