Latest news with #GBCSA
Zawya
08-07-2025
- Business
- Zawya
MSCI South Africa Green Annual Property Index 2024
The MSCI South Africa Green Annual Property Index for 2024 continued to reinforce the investment rationale for sustainable, resource-efficient real estate. Longkloof - Growthpoint Properties owned, 4-Star Green Star Existing Building Performance v1 rated, Prime, A-Grade offices in Gardens, Cape Town. Published annually since 2016 in collaboration with the Green Building Council of South Africa (GBCSA) and sponsored by Growthpoint Properties (JSE: GRT), the index offers an independent and globally aligned assessment of how green-certified properties compare to their non-certified counterparts in terms of investment performance. For 2024, the index showed that green-certified Prime & A-grade offices produced a total return of 10.1% which was 120bps above that of non-certified office assets of a similar quality during the year. Since the index's launch in 2016, green-certified offices have outperformed non-certified assets by a cumulative 28.2%, delivering superior capital growth and operational resilience. Timothy Irvine, head of asset management: offices at Growthpoint Properties Lisa Reynolds, CEO at Green Building Council South Africa (GBCSA) Timothy Irvine, head of asset management: offices at Growthpoint, which is at the forefront of green-building certification in South Africa, comments, ' The 2024 MSCI South Africa Green Annual Property Index reaffirms the investment edge of green-certified commercial real estate. The long-term outperformance of green-certified offices signals growing occupier and investor preference for sustainable, resource-efficient real estate and reinforces the strategic competitiveness of portfolios with a strong green building footprint. ' Published in April 2025, the 2024 index covered a sample of 242 prime and A-grade office properties with a combined value of R54.7bn, including 122 green-certified buildings. Reflecting the growing momentum of green certification beyond the office sector, the index also captured the performance of 33 green-certified retail properties. ' The index has shown over several years that green-certified offices typically have better investment returns than non-certified offices. This year's expansion to include the retail sector is exciting for us and reflects our commitment to supporting the drive for green across all building typologies. Through this expansion, we're looking forward to tracking these results, and bringing new insights to market, ' says Georgina Smit, head of technical, GBCSA. Georgina Smit, Head of Technical at Green Building Council South Africa (GBCSA) Eileen Andrew, Vice President of EMEA Real Estate Client Coverage, at MSCI South Africa 2024 was another year of outperformance for green-certified property This outperformance of green-certified Prime and A-grade offices was driven by a higher capital growth on the back of a 34% higher gross income per square meter, a significantly lower operating cost to income ratio (39% vs 46%) and a 30bp lower capitalisation rate. For green-certified retail property, the outperformance was similar in 2024. Green certified retail property delivered a total return of 13.2%, 130bps higher than that of non-certified retail with the outperformance driven by an 80bp lower capitalisation rate and a 18% higher net operating income per square meter. Similar to the green office sample, certified retail properties also boasted a lower cost-to-income ratio of 41% compared to the 44% of its non-certified peers. Green-certified offices also had a lower discount rate, driven in part by a lower vacancy rate (11.1% vs 14.8% for non-green certified prime and A-grade offices) – reinforcing the premium placed on green office accommodation by occupiers and valuers alike. Long-term outperformance Since the index's inception in 2016, prime and A-grade green-certified offices have consistently delivered stronger capital growth than non-certified office properties each year, underscoring the resilience and value proposition of sustainable buildings. Green-certified office assets have outperformed their-noncertified counterparts by a cumulative 28.2%. While the office sector has led the way in the adoption of green certification, the performance advantage is becoming increasingly evident in the retail segment as well, where a similar return differential emerged in 2024, signalling broader market recognition of the investment benefits of sustainable real estate, ' After nine years of consistent outperformance both on valuations and income, there can be no doubt about the fact that certified properties deliver higher returns to investors. The next step in this journey is to show that certified properties better mitigate climate risk and MSCI is well equipped to do that, ' says Eileen Andrew from MSCI. Lisa Reynolds, GBCSA CEO, adds: ' Our longstanding partnerships around this index are a deep and a solid real investment into providing the property sector with the data and confidence required to build the investment case for green buildings. For some, the question was 'Why should I invest in making my property portfolio green?', now it becomes, 'Why would I not invest in green?'.' As a leader in sustainable commercial property, Growthpoint holds one of South Africa's largest and most varied portfolios of green-certified buildings. These assets not only lower the company's carbon footprint but also support long-term climate resilience central to its ESG strategy. With a clear goal to reach carbon neutrality across its portfolio by 2050, Growthpoint continues to lead in sustainable real estate. Chief operating officer Engelbert Binedell says data from MSCI and the GBCSA is key to shaping Growthpoint's approach. ' We use this data to benchmark performance, refine energy and net-zero targets, and realise the full financial and environmental value of green certification. This data-driven strategy ensures steady progress while meeting the expectations of investors, tenants and society for a low-carbon future. '
IOL News
26-06-2025
- Business
- IOL News
Design matters: discerning homeowners and investors shape the future of property aesthetics
Bespoke interiors by Lucy Harris Studio blend nature, modern eclecticism, and comfort for a growing family in In a new Brooklyn brownstone home. Image: Brian W. Ferry Discerning homeowners and investors were demanding more from design (both inside and out) as South Africa's property market continues to evolve. According to the team at Fine & Country Sub-Saharan Africa (SSA), who specialise in premium residential property across the region, the sector was on the cusp of a design shift, shaped by changing values, technological innovation, and a growing desire for permanence and personalisation. Real estate is no longer about location or price per square metre only. Increasingly, how a home looks, feels, and functions is as important as where it is. The open plan living, long favoured for its sense of space and sociability, is giving way to more intentional spatial zoning. This is not a complete departure from the open-plan ethos, but rather an evolution. "We're seeing a move toward multi-functional spaces that balance openness with privacy," says the Fine & Country team. "Homeowners want connection, but they also want dedicated areas for focus, fitness, or retreat." Designers were responding with innovative partitions, sliding screens, and level changes to create zones within zones, offering flexibility without forfeiting flow. Sustainability has matured from a buzzword into a baseline expectation as today's buyers are more educated and more discerning. 'It's not enough to add a few solar panels and call a property green. Sustainability must be deeply embedded, from passive climate control and greywater systems to locally sourced, low-impact building materials.' Green buildings are not only for the privileged few; they are accessible and beneficial to all. As South Africa faced rising energy costs, water shortages, and growing investor pressure for assets that meet ESG (Environmental, Social, and Governance) criteria, the property industry must adapt. Contrary to common misconceptions, green buildings are not inherently more expensive. They deliver long-term financial and environmental benefits, often at little to no extra cost. The Green Building Council South Africa (GBCSA), an independent third-party verifier, defines a green building as one that reduces its environmental impact across multiple areas, including energy and water efficiency, material use, waste, indoor air quality, transport access and socio-economic benefits. 'People often assume green buildings are about extravagant add-ons like solar panels,' said Lisa Reynolds, CEO of GBCSA, recently. 'In reality, they prioritise efficient design-reducing resource consumption while enhancing occupant well-being and long-term sustainability.' Natural ventilation, high-performance glazing, and smart home systems that actively manage energy use have become standard in high-value homes. In turn, design must accommodate these technologies while maintaining aesthetic harmony. The Absa's Homeowners Sentiment Index (HSI) for the first quarter of this year also revealed a growing aspiration among South African homeowners to live off-grid, with many seeking to replace municipal and state-provided services, particularly electricity and water, in pursuit of greater sustainability and self-sufficiency. More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources. In parallel, households are actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security. The stark minimalism of the 2010s is giving way to a softer, warmer approach. This includes textured plaster walls, soft curves, and tactile surfaces like limewash, fluted wood, and natural stone. 'The aesthetic is pared back but layered. There's a greater emphasis on craftsmanship, heritage finishes and a neutral palette that feels calm, not cold.' This trend is also practical as homeowners spend more time in their spaces, working, entertaining, and relaxing, there is a need for comfort as well as style. Interiors are expected to be intuitive and inviting. While restraint rules much of today's design thinking, personalisation is back in a big way. "We're seeing a renewed interest in bold, singular design elements, arched doorways, sculptural staircases, or one-off art commissions. It's about grounding a home with character and creating moments of surprise or narrative." In architecture, this translates to stronger façades with texture, depth, and asymmetry, rather than flat or formulaic silhouettes. As lifestyle and wellness continue to shape how people live, homes are being reimagined as holistic ecosystems. Biophilic design, the integration of nature into built environments, is gaining traction through indoor gardens, natural light corridors, and even living walls. 'People want homes that not only reflect their style, but also support their health, productivity and wellbeing. This is especially true for buyers in the upper end of the market, where design must elevate daily living.' There is a movement toward what some architects are calling 'honest architecture', a rejection of mimicry or over-decoration in favour of authenticity. Raw materials are celebrated rather than covered up. The function of a space is expressed clearly in its form. In South Africa, this dovetails with a celebration of local context: embracing vernacular architecture, indigenous plantings, and indoor-outdoor transitions that connect people to place. As buyers become more design-savvy, the expectations placed on homes are becoming more nuanced. The challenge for architects, designers and developers is to create spaces that are not only beautiful, but intelligent, sustainable and deeply personal. 'Our clients are seeking more than properties, they're seeking homes that express who they are and how they want to live. Design plays a central role in that story,' says Fine & Country SSA. Independent Media Property
