Influence of sustainable construction aspects and quality of public space on the price of houses in the Czech Republic

Abstract

The construction industry produces 25 to 30 % of greenhouse gases and consumes 40 % of globally required energy. The construction industry and buildings contribute significantly to the climate change. Also the buildings are the cornerstone to the public space and affect its quality. One of the approaches to reduce greenhouse gas production (especially carbon dioxide) is the construction and operation of buildings according to the principles of sustainability. Houses are mostly not certified (environmental certification programs as LEED or BREEAM) because it is uneconomical to certify. However, the houses can fulfill sustainable construction aspects like using natural or recycled materials, design of energy efficient buildings, using alternative energy sources, connection to public transport, etc. The influence of using basic sustainable principles and quality of public space as an important part of sustainability to a price was tested through a database. The database consists of 98 samples of houses sold over the year 2017 in Brno - venkov district. Significant price settings factors were identified. Due to the number of variables, testing by multivariate regression analysis was performed on submodels, individual variables could be correctly identified. Tested database confirmed basic price setting factors for houses, such as the technical condition of the house, distance from the city of Brno, as well as the useable area of the house and the factor of liquidity. The influence of sustainable principles like using renewable energy, low energy demand, solar panels for hot water or photovoltaic panels was rejected. Some kind of sustainable principle was detected at 10 % of samples. Material base, especially using natural materials like timber, was not found as a price setting factor. One of the submodels was focused on the social part of the sustainability given to the location and public space. The possibility of using public transportation or car park close to the house was not confirmed as price setting factors affecting the price. Also the danger of flooding, index of criminality and noise level were considered and were rejected as price affecting. This paper presents results aimed at exploring the importance of the basic aspects of sustainable construction and quality of public space on the price of houses in the database of 98 houses in Brno - venkov district, Czech Republic.The construction industry produces 25 to 30 % of greenhouse gases and consumes 40 % of globally required energy. The construction industry and buildings contribute significantly to the climate change. Also the buildings are the cornerstone to the public space and affect its quality. One of the approaches to reduce greenhouse gas production (especially carbon dioxide) is the construction and operation of buildings according to the principles of sustainability. Houses are mostly not certified (environmental certification programs as LEED or BREEAM) because it is uneconomical to certify. However, the houses can fulfill sustainable construction aspects like using natural or recycled materials, design of energy efficient buildings, using alternative energy sources, connection to public transport, etc. The influence of using basic sustainable principles and quality of public space as an important part of sustainability to a price was tested through a database. The database consists of 98 samples of houses sold over the year 2017 in Brno - venkov district. Significant price settings factors were identified. Due to the number of variables, testing by multivariate regression analysis was performed on submodels, individual variables could be correctly identified. Tested database confirmed basic price setting factors for houses, such as the technical condition of the house, distance from the city of Brno, as well as the useable area of the house and the factor of liquidity. The influence of sustainable principles like using renewable energy, low energy demand, solar panels for hot water or photovoltaic panels was rejected. Some kind of sustainable principle was detected at 10 % of samples. Material base, especially using natural materials like timber, was not found as a price setting factor. One of the submodels was focused on the social part of the sustainability given to the location and public space. The possibility of using public transportation or car park close to the house was not confirmed as price setting factors affecting the price. Also the danger of flooding, index of criminality and noise level were considered and were rejected as price affecting. This paper presents results aimed at exploring the importance of the basic aspects of sustainable construction and quality of public space on the price of houses in the database of 98 houses in Brno - venkov district, Czech Republic.