The operational expenditure of a commercial building is a fundamental metric in understanding the valuation, and thus the investment potential, of real estate. The operational expenditure is deducted from the future income streams of a building, and therefore, a higher operational expenditure will reduce future income streams, and as such, give a lower valuation.
Governments across the Gulf are committing to cut carbon emissions and energy demand. With programmes such as Dubai's integrated energy strategy, Abu Dhabi's Vision 2030 and Qatar's National Vision 2030, it is essential that we look at how buildings can help play a part.
So, with energy prices and carbon emissions rising, people are keen to seek out energy reducing solutions. We've found insulation can be pretty effective, however, understanding the Return on Investment (ROI) that can be generated from reduced energy charges by going over and above what is required by local regulations, is essential to insulation being considered as one of the big players.
We asked Mott MacDonald to research the energy usage, carbon emissions and Return on Investment (ROI) when specifying additional insulation solutions versus doing the minimum and complying with local regulations.
"All of the models in each of the study locations showed a reduction in cooling and overall energy consumption when improvements were made to the U-values of the building’s wall, roof and floor elements" —Mott MacDonald