Why green is the new gold

Greenfield spaces should be an essential factor when planning a development – not only because they are good for the environment, but because they add financial value.

We need healthy habits

Arguments for the protection and conservation of biodiversity in natural habitats are well documented. Humans, along with a multitude of other creatures, depend on natural systems for their wellbeing.

Protecting natural areas within housing estates also constitutes good business practice, since more aesthetically pleasing living spaces command higher property prices.

Furthermore, the functions they provide have monetary value for both property owners and their local government service providers.

The benefits supplied by healthy ecosystems are called ecosystem services, which can be quantified financially. No comprehensive economic valuation of the South African scenario exists, but recent studies prove that significant financial monetary values can be attached to maintaining a healthy environmental balance during estate planning and construction.

Nature services

Ecosystem services of greenfield developments will typically include a stream traversing the property, providing a natural drainage channel that directs excess water into larger catchment areas.

Swampy areas around the stream’s edge filter the inflow of impurities and release higher quality water into the stream. Higher-lying grasslands soak up precipitation and allows excess water to drain into the swamp.

Such ecosystems in built environments serve as a natural storm-water drainage system and can also facilitate storage. Plants, insects, and small animals are attracted and provide complementary functions such as pollination and healthy soils. The result bodes well for estate residents, their municipalities, and entire provinces.

Turning green into gold

According to a report by Matthew DiLallo in millionacres.com, developers often turn greenfields into profitable real estate ventures. Locations to accommodate new projects are progressively harder to come by, and some of the most desirable among these are greenfield sites.

But don’t assume that the name implies agricultural land only, as the term generally refers to any real estate construction project on a previously undeveloped piece of property.

Fields, forests and ‘burbs’

Typical, greenfield development sites may include agricultural fields, but also forests and unused land parcels, in many cases located along waterways, near highway off-ramps, or adjacent to cities and their suburbs.

Such locations make greenfield sites ideal spots to construct new commercial buildings to support a region’s growth. For most parties involved, such progress translates directly into monetary gains.

Potential greenfield sites escape development over the years because they are often situated further away from existing infrastructure. But as urban areas sprawl, these properties become increasingly ripe for development.

Quality of life the biggest boon

It is typically easier (read: cheaper) to build on undeveloped land, and because many greenfield developments are in new areas, more space is availed to allow for future expansion.

Congestion is kept at bay, which means that greenfield areas can produce higher returns on investment than other real estate ventures.

Fewer people want to live in concrete jungles. Therefore, a growing number of homeowners are prepared to pay higher prices for an elevated quality of life provided by stimulating surrounds while contributing to the conservation of ecosystems on their doorstep, and thus the general health of the planet.

This trend should go a long way to convince developers of the many incentives to create pockets of biodiversity within estates, not least of these pertaining directly to their own pockets.