ANALYSIS OF GREEN BUILDING PRACTICES AND RENTAL PREMIUMS: A CASE STUDY OF IKEJA GRA, LAGOS STATE

Abstract

This study investigates the influence of green building practices on rental premiums in Ikeja GRA, Lagos State, Nigeria. As urbanization intensifies, the adoption of sustainable construction methods has become pivotal in addressing environmental concerns and enhancing building performance. Green buildings, characterized by energy-efficient designs, sustainable materials, and reduced environmental impact, are gaining traction in Nigeria's real estate market. However, empirical data linking these practices to rental premiums in Nigerian contexts remains scarce. Utilizing a mixed-methods approach, this research combines quantitative analysis of rental data with qualitative insights from tenant surveys. The study aims to assess the prevalence of green building features in Ikeja GRA, quantify their impact on rental prices, and explore tenant perceptions regarding these features. Preliminary findings suggest that properties incorporating green building practices command higher rental premiums, indicating a growing tenant preference for sustainable living spaces. These results align with global trends where green buildings often achieve higher occupancy rates and rental values due to increased tenant demand and operational cost savings. The implications of this study are multifaceted. For developers, integrating green building practices can lead to enhanced property values and a competitive edge in the market. For policymakers, promoting sustainable construction can contribute to environmental conservation and the achievement of sustainable development goals. For tenants, residing in green buildings offers benefits such as reduced utility costs and improved indoor environmental quality. This research underscores the economic viability of green buildings in Nigeria and provides a foundation for further studies on sustainable real estate practices in the country.