Matters of health have taken the spotlight since the news of the novel coronavirus broke. It’s not only the medical industry that has been shaken up; all sectors of society felt the effects. The Philippine real estate industry, for one, rolled out special precautions in ensuring the well-being of stakeholders. Condominiums have placed alcohol dispensers in lobbies and shared facilities, even implementing “no mask, no entry” policies. Meanwhile, malls and retail amenities have set visual marks on waiting areas, encouraging strict social distancing among grocery shoppers.
As health becomes the top priority today and likely in the future, questions about more drastic changes in buildings have surfaced. The concept of ‘healthy buildings,’ for one, has been revisited with more consideration. The question stands, can properties safeguard people from future pandemics?
In the fifth installment of Strategizing Real Estate Marketing: An Industry Response to COVID-19, Lamudi’s developer webinar series, this matter has been the focus of the discussion of another panel of experts: Christopher Narciso, Executive Vice President of Arthaland Corporation; Emma Imperial, President and CEO of Imperial Homes Corporation; and Marla Mendoza, Assistant Marketing Manager of Filigree.
Here are some of the highlights of the latest webinar:
Definition of ‘Healthy Buildings’
A building that has features that protect and take care of the occupants–this is how Narciso defined healthy buildings. “It promotes practices that keep the occupants well and facilitates opportunities for them to connect with one another and to live life to the fullest,” he added.
For their organization, Narciso shared that they had the honor of securing green certifications on their projects. Arthaland Century Pacific Tower, for one, earned LEED, BERDE, and EDGE certification, and is the first office building in the country to be triple certified in relation to green standards. This is a testament to the building’s reduced use of energy and natural resources.
Recently, it also received its WELL certification for buildings committed to improving human health. Narciso noted that the features of the building are geared toward adding benefit to end-users.
For her part, Imperial focused on the use of special raw materials in defining what healthy buildings are. “We have a technology that comes from Denmark that uses ultra-high-performance concrete. This kind of material is non-porous, and therefore bacteria can’t come in, and the life of people inside is going to be a lot safer,” she noted.
Meanwhile, noting the shift from the popular term ‘green buildings’ to ‘healthy buildings’, Mendoza mentioned that the latter carries a more holistic perspective, in a way that properties today go beyond addressing the environmental repercussions that come with construction and maintenance, focusing also on the safety and well-being of the very occupants of the property.
“The whole point of having green buildings is fighting climate change. But then, there’s heightened awareness now that buildings should be able to support and protect humans. It’s not just for the environment, but also for the occupants,” she said. Healthy buildings should accommodate people’s physical, emotional, and occupational needs.
This is the philosophy Filigree operates on when designing and constructing buildings, Mendoza shared. “We really focus on human experience. We wanted to offer projects that will better the life of end-users.” Their most premium offering, Botanika Nature Residences, is a testament of this, having received a four-star rating from BERDE, a local certification program for green buildings.
Safeguard Against Outbreaks
Healthy buildings may be a major line of defense against infections from pandemics. Mendoza cited their real estate project as an example. “We’re very much into open, generous spaces. We also have single-corridor hallways, which allow social distancing.”
Extending to their project’s ventilation systems and the presence of natural light, she noted that these allow dwellers to have a better, healthier immune system. Most of their units feature balconies that offer ample space for people to soak in some sunshine. Mendoza noted, “The more that you have a desirable indoor environment, the more you want to stay inside as well, the more you’re not anxious.”
She likewise cited the importance of being in a walkable community, as it encourages people to have a little bit of exercise when going outside.
Narciso agrees with Mendoza in how certain features in healthy buildings contribute to preventing transmission of infections. He, however, turned to the importance of soft skills in maintaining properties. “There has to be protocols or practices in place for the occupants, as well as the property manager.”
HE ADDED, “IT’S CRUCIAL FOR PROPERTY MANAGERS AND THE RESIDENTS TO BE VERY FAMILIAR WITH THE SAFETY MEASURES AND HEALTHCARE GUIDELINES TO ENSURE THAT EVERYBODY WILL BE SAFE AND HEALTHY.”
Meanwhile, Imperial reiterated the use of ultra-high-performance concrete in preventing diseases in residential communities. “This high-performance concrete is able to avoid leak-proof surface because of its non-porosity. This one resists the growth of bacteria and viruses. In other words, the application of high-performance concrete eliminates potential diseases and infections,” she said.
In contrast, conventional hollow blocks eventually allow mold to build up inside homes, affecting the respiratory health of the occupants over time.
Mentioning solar power, Imperial likewise noted that the use of renewable energy sources is crucial in reducing pollution at large, thus protecting people’s well-being.
A New Essential in Property Development
Asked why developers should consider healthy buildings in the first place, Narciso harps on the interconnectedness of industries, noting that it’s important to look at society as a whole. The current global health crisis has made the inter-relationships among different sectors more apparent. “I think for one industry and one business and one company to do well, it has to take care of society and its community. I hope a lot of other developers would start to adopt the same outlook.”
While recognizing that there are costs in putting up healthy buildings, he mentioned that there are meaningful rewards from it, and that there are far more risks on the opposite side of the coin. He said, “Having unhealthy buildings, unhealthy environments, unhealthy work set-ups actually cost more.”
“If there’s one lesson we can derive as developers, it’s that what we perceive as additional costs to ensure that a development is sustainable, green, and healthy are actually minuscule [compared] to the negative effects that can happen,” he added.
For Imperial, it’s imperative that developers factor in climate change in their projects, as it’s key to protecting not only the world but also the communities they’re serving. She likewise noted the change in buyers’ preferences. “They now realize that a green home is better for them. Our company has been seeing 70 percent [growth] every year,” she said.
Mendoza, on the other hand, said that the current health crisis should prompt industry players to see healthy buildings as a vital part of development. “It’s no longer just a statement, if I may say, or a marketing angle. It’s really a necessity now, an essential. We just can’t take it for granted,” she said.
While recognizing that green practices have long been associated with luxury developments, Mendoza noted that there are ways to commit to the standards of health and wellness in properties, while still keeping costs low. Moreover, she reiterated what Narciso said about the long-term benefits of investing in healthy buildings. She said, “The lasting value of what you can get from making a green building has far more worth than the initial cost that you will accumulate.”
Advising developers to be committed to ‘people-centric’, future-ready designs from the get-go, Mendoza cited that details, such as the location, should be a top consideration in complying with health and wellness standards in real estate. She noted that buyers are more aware now of how their homes affect their well-being, with some wishing that they have more open space or are near an essential service facility, say, a supermarket.
“WE HAVE TO MOVE FORWARD NOT JUST BY BUILDING, AND BUILDING, AND BUILDING. IT REALLY HAS TO BE MORE WELL-THOUGHT-OUT, PURPOSEFUL, AND INTENTIONAL,” SHE SHARED.
Transition to Healthy and Green
The stakes are higher indeed for healthy buildings, Mendoza said. She, however, recognized that this is something industry players can advocate for. “Real estate can even leverage on this, and [tell] the market that they need this, that this is actually essential. This is no longer for luxury,” she mentioned.
“EVERYONE HAS A RIGHT TO LIVE AND WORK IN A HEALTHY BUILDING,” SHE ADDED.
In a way, Narciso sees that healthy buildings will be a part of the status quo post-pandemic. He said, “What this pandemic has brought about is the [acceleration] of norms and practices that will eventually become the new normal: the need for green and healthy [buildings], observing sustainable practices, taking care of the environment and the people.”
“Whether it’s for luxury or affordable or mid, green or healthy features were treated as marketing elements, things to help sell. But I think we all have to adopt this as part of our lifestyle now. These are basic essentials to healthy living,” he added.
Developers are likely to move into the direction of health and wellness practices in design and construction of future buildings, Narciso believes. He, however, acknowledges that many see this as an ‘unessential cost,’ taking away profits.
He added, “It takes a lot of commitment, a great deal of commitment and discipline, for a company or a developer to achieve sustainability and those green building certifications. It’s not easy.” The entire organization must be compelled that this move is necessary and beneficial.
The cost is indeed the biggest reason developers are not compelled to subscribe to the sustainability agenda. Imperial noted, however, that there’s greater value for money in going healthy compared to doing things the traditional way. She explained that the technology they’ve been using allows materials to last for a hundred years, compared to a typical hollow block that lasts only 30. To this, she noted, “You see the value of that particular house to be growing seven times compared to the hollow blocks.”
The ease in building likewise trumps the cost, Imperial said. “The way to construct this new building technology comes from the factory, and the walls are built in four hours, compared to 30 days,” she shared.
Sustainability Amid COVID-19
While property developers are set on their green efforts, it’s not a secret that the very pandemic poses a threat to the business environment. Acknowledging this, Mendoza pointed out that this should serve as a challenge for players to fully dive into the idea of better, healthy buildings. “This pandemic [should] push developers to innovate, to think out of the box, to be more mindful of their actions,” she said.
Keeping health in mind is inevitable since the end-users themselves will be more health-conscious. Mendoza explained, “The market will be more meticulous about their future purchase. Even with non-residential, even with the skeletal workforce, you’d want to go to a building that will secure your safety and you know will follow sanitation standards.”
Even existing buildings can follow the health and wellness agenda. Mendoza said that good property management is key in achieving this.
For his part, Narciso urged property developers to look at the end-users of buildings. “The market will demand all [healthy] features to be in place. They would prefer to stay in homes, office buildings, or condos that provide for a better well-being and overall satisfaction,” he said.
The move to healthy buildings hits the pressing needs of a business environment in crisis. Narciso said, “Sustainability really means the environment, economy, and society. People, planet, profit. You have to take care of all of that.”
Changing Market Needs
Considering the new normal when it comes to buyers’ needs and demands, Narciso was quick to say that it’s not just checking certifications that can inform the market about the wellness practices of a building. “Those certifications are either plaques or papers, but nothing beats the actual experience. You would feel that. Our residents in our Aria condominium project in BGC always say they actually love living there because it feels really good,” he shared.
Narciso gave a few tips on what exactly to look for in a healthy building. For workplaces, he said, “One is the amount of light that comes in. There’s a feeling of airiness and brightness that leads to one’s positive feeling. The air quality is another thing. And I think, the density. The simple elements of people transport in a building, such as the quality of the elevators.”
For residential projects, Narciso started out by mentioning the use of solar power. He then extended this to water-saving features, amount of [sunlight], quality air, amount of open space, type of construction materials, and utilization of smart features, such as automation.
Opportunities in the Healthy Buildings Segment
It’s not a secret that the pandemic has brought about business and economic issues. For the property experts, however, crises can likewise bring opportunities to serve the market better.
“PEOPLE LIVING IN CRAMPED AREAS ARE GOING TO BE POTENTIAL BUYERS. IN MY CASE, I’D LIKE TO BE IN AN OPEN AREA WITH MORE SPACE, IN A SAFE BUILDING THAT REALLY PROMOTES HEALTHY BENEFITS,” IMPERIAL NOTED.
This, coupled with the buyer’s newfound focus on energy-saving features and reduced likelihood of home repair and maintenance post-pandemic, will drive the demand for healthy buildings, she added. Healthy buildings will likewise gain more attention since they’re usually in desirable communities, walkable and self-sustaining, and with pharmacies, offices, and other establishments within reach.
With the work-from-home potentially being the new normal, Imperial said that people are more likely to move out of the central business districts. “Many of them would want to live in areas where it’s healthier and a lot less polluted,” she shared.
Mendoza, meanwhile, feels that the pandemic has solidified their commitment as a company to the property factors they’ve long been focusing on: location, space, design, and presence of nature. “Developers should concentrate on these aspects,” she noted.
“NOW MORE THAN EVER, IT’S VERY ESSENTIAL FOR US DEVELOPERS TO REALLY PUSH FORWARD WITH THIS AND TO BE MORE AWARE OF WHAT HAS TO BE DONE,” MENDOZA ADDED.
Narciso agrees with Mendoza about the pandemic emphasizing the need for healthy buildings. He pointed out, “It provides a spotlight really on the importance of the things we believe in. As a company, we’ve adopted a design philosophy where we want to leave a legacy of sustainable developments.
The silver lining here is, it allows our market, as well as other stakeholders, to truly understand and appreciate the reason we build things this way, why we actually want to come up with these types of developments.”
Narciso hopes to see other industry players adopting healthy, green developments. “We would like to see the whole industry move towards a more sustainable way of doing things,” he said.
The coronavirus pandemic has increased awareness about health and wellness across all sectors. The real estate industry, for its part, responds through the development of healthy buildings.
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