Managing the real estate development paradox

Abstract

There is a growing emphasis on reducing the amount of carbon that is embodied in buildings, a huge contributor of greenhouse gas emissions is the real estate sector. Despite this, a number of challenges, primary among them economical limitations, obstruct the advancement of meaningful carbon reduction. Interestingly, there is an absence of research that focuses on these financial issues from the perspective of developers, and what little study there is sometimes lacks thorough analysis and practical answers. Reevaluating developers' investment decision-making is crucial, especially in light of the industry's recognition of the need of reducing carbon emissions, especially with regard to embodied carbon. But incorporating these fresh viewpoints into useful models is still a challenging task. Therefore, "How can developers manage the paradox between profitability and embodied carbon reduction?" is the research question. By answering this question, knowledge of the ways in which developers' perspectives are influenced by financial factors when integrating embodied carbon reduction strategies into investment decision-making is improved. The goal of this study is to guide developers and the broader system surrounding this subject to profitable Paris Proof projects. This change is anticipated to enable the installation of new, ecologically friendly dwellings while considerably lowering the building and construction sector's carbon footprint.