Cost and Future Value Assessment of LEED-Certified Buildings in Cyprus: single in-depth case study approach with supporting market evidence

Abstract

Sustainable development has become a powerful influence on the global real estate sector, and the use of green building rating systems such as LEED (Leadership in Energy and Environmental Design) has grown alongside it. In Cyprus, however, LEED certification is still uncommon and there is very little market evidence on its financial viability. This study sets out to examine the financial implications of LEED certification in Cyprus, with particular attention to the construction cost premium it carries and its effect on long-term asset value and investment performance. The aim is to test whether LEED is a financially viable option for developers, investors and owners operating in the Cypriot office market. The work uses a single in-depth case study approach with supporting market evidence, looking at existing LEED-certified office buildings in Cyprus. Primary data was collected through interviews with developers, valuers and other industry professionals. Secondary data was drawn from the international literature and from published cost studies of sustainable buildings. The findings are intended to improve understanding of how sustainable building certification plays out financially in the Cypriot market. The study also sets out a cost-benefit analysis framework that developers, investors and property professionals can use when assessing the feasibility of LEED-certified office developments locally.