Motivations for Green Real Estate Investments in Residential Properties: A Review

Abstract

Green residential buildings benefit their owners economically, socially, and environmentally. However, it is not known whether the buyers know the benefits that will be gained ,when they purchase this green residence: it could also be that they are just following the current trend. Therefore, this review was conducted to identify the motivations for green real estate investments in residential properties and propose a conceptual framework for future validation. In relation to that, both past empirical and conceptual studies were reviewed. A total number of 277 articles were found in several e-databases, searched with the following keywords: ‘green residential,’ ‘green real estate,’ ‘green building,’ ‘sustainable building,’ ‘driver,’ and ‘motivation.’ After the filtration phase, 26 full-text articles that are pertinent to the study were selected for review. The review revealed four variables that motivate property buyers or investor-owned to invest or purchase green residential property. These variables concern environmental degradation, financial returns, cost-saving, and social and environmental benefits. Therefore, an informed decision on the benefits received, especially for green residential properties, could affect the resident’s motivation towards the certified residential properties, encouraging more demand for green residential in the market and spurring more green and sustainable development. For further research, the proposed conceptual framework could be tested for model testing and validation.