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An Investigation of the Adoption of Net-Zero Buildings (NZBs) in the South African Commercial Property Market

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  • Sindisiwe Kalumba

    (Urban Real Estate Research Unit (URERU), Department of Construction Economics and Management, University of Cape Town, Cape Town 7700, South Africa)

  • Hannah Volker

    (Urban Real Estate Research Unit (URERU), Department of Construction Economics and Management, University of Cape Town, Cape Town 7700, South Africa)

  • Saul Nurick

    (Urban Real Estate Research Unit (URERU), Department of Construction Economics and Management, University of Cape Town, Cape Town 7700, South Africa)

Abstract

This study investigates factors influencing net-zero building (NZB) adoption in the South African commercial property sector through a qualitative analysis of four case studies, with a net-zero carbon building focus. Findings indicate that while green building certifications have exceeded 1000 since 2009, NZB adoption remains limited (64 certifications as of 2024). Key barriers include retrofit cost premiums (20–30%), technical capacity gaps, and insufficient policy frameworks. Primary drivers comprise demonstrated energy efficiency gains (15–25% reductions), tenant demand for sustainable properties, and institutional support through certification programs. This research contributes an empirical model identifying transitional “Amber Zone” factors, including energy security concerns and renewable energy returns on investment, which mediate between barriers and drivers. Case evidence shows NZB implementation can be achieved within existing budgets through integrated design approaches. These findings provide a structured framework for understanding NZB adoption dynamics in emerging markets facing similar energy and sustainability challenges.

Suggested Citation

  • Sindisiwe Kalumba & Hannah Volker & Saul Nurick, 2025. "An Investigation of the Adoption of Net-Zero Buildings (NZBs) in the South African Commercial Property Market," Sustainability, MDPI, vol. 17(12), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5272-:d:1673941
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    References listed on IDEAS

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    1. Tianqi Liu & Lin Chen & Mingyu Yang & Malindu Sandanayake & Pengyun Miao & Yang Shi & Pow-Seng Yap, 2022. "Sustainability Considerations of Green Buildings: A Detailed Overview on Current Advancements and Future Considerations," Sustainability, MDPI, vol. 14(21), pages 1-23, November.
    2. Sanele Stungwa & Nyiko Worship Hlongwane & Olebogeng David Daw, 2022. "Consumption and Supply of Electricity on Economic Growth in South Africa: An Econometric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 266-274.
    3. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Electricity consumption and population growth in South Africa: A panel approach," MPRA Paper 113828, University Library of Munich, Germany.
    4. Feng, Wei & Zhang, Qianning & Ji, Hui & Wang, Ran & Zhou, Nan & Ye, Qing & Hao, Bin & Li, Yutong & Luo, Duo & Lau, Stephen Siu Yu, 2019. "A review of net zero energy buildings in hot and humid climates: Experience learned from 34 case study buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
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