Budapest Office Market represents Green Star

This post contains parts of an article written by Michael LaBelle and Sergi Moles Grueso at Central European University (CEU).

Long-term solutions for high energy bills

The Hungarian office market exemplifies the long-term solution for high energy bills. According to Colliers International, 26-27% of Budapest office stock is green accredited. Previous savings in energy costs amounting to 10-20% are projected to have increased to 30% in 2015. Office buildings with green accreditation, such as  BREEAM, LEED and DGNB, deliver an average rental price of 6% more than non-accredited buildings, along with higher occupancy rates and 16% higher sales prices.

Private office owners are saving both money and energy

More notable is the impact buildings have on national energy consumption. In Hungary, according to the Ministry of National Development, buildings represent 40% of the primary energy consumption, with residential buildings accounting for 60% of this wedge. Private office owners are saving both money and energy; homeowners should also be able to realize these savings.

The CSOK and the VAT rebate will speed up energy efficiency

The Hungarian government has already committed to the EU to renovate 700,000 residential buildings and 2,400 public buildings by 2020. Conditional lending on energy efficiency standards for the Government Support Family Benefit (CSOK) program and the VAT rebate for new dwellings will speed up energy efficiency as a main component of Hungary’s energy strategy. Improved standards will also reduce the country’s energy imbalance – which is significant. Improving energy efficiency in the Hungarian building sector requires both government action and private initiatives.

Office market already going green

The Budapest office market shows the financial benefit of reducing energy consumption. Qualification for both CSOK and the VAT rebate should be dependent on higher energy efficiency standards. Instead of saddling the children who will grow up in CSOK houses with more energy debt, the government should begin to build them a sustainable low-cost energy system.

(Source: http://bbj.hu/opinion/csok-housing-support-could-help-build-energy-efficiency_111856)