World Green Building Trends 2018
About this book
World Green Building Trends 2018: Smart Market Report, published by McGraw-Hill Construction (now Dodge Data & Analytics) in partnership with the World Green Building Council (WorldGBC), presents the findings of the most comprehensive global survey of green building market activity, drivers, and barriers conducted up to that point. Drawing on responses from over 2,000 construction industry professionals across 86 countries, the report provides a uniquely detailed comparative picture of how green building is evolving across very different market contexts. The 2018 edition's headline finding is that the green building market is growing rapidly and is expected to continue doing so: 47% of respondents reported that more than 60% of their projects were green in 2018, and 55% expected that figure to hold by 2021.
This compares to just 18% reporting such high green project shares in 2012, demonstrating that green building has moved from niche to mainstream in the global construction industry within a single decade. The survey reveals substantial regional variation in green building maturity. In the Middle East and Africa, green building growth is driven primarily by regulatory mandates (Abu Dhabi, Dubai's Al Sa'fat, South Africa's Green Star adoption), while in North America, market demand from real estate investors and corporate occupants is the primary driver.
Asia-Pacific markets show the fastest growth in certification volumes, led by China's Green Star equivalent standard, Singapore's BCA Green Mark, and India's IGBC system. Business benefits are a central theme. Respondents report that green buildings command rental premiums of 5-12% above conventional space in established markets, with capitalization rate advantages driving institutional investment into certified assets.
The most frequently cited benefits are improved employee productivity and wellness (identified by 69% of respondents as a key business driver), reduced operating costs (energy and water), and enhanced corporate reputation for sustainability commitments. Barriers to green building adoption are systematically analysed. The most commonly cited obstacle is the perceived higher first cost of green construction — cited by 76% of respondents — despite evidence that cost premiums have fallen to 2-7% above conventional construction in mature markets, and that lifecycle cost savings typically recover the premium within 5-10 years.
Other barriers include lack of client awareness, shortage of skilled green building professionals, and absence of clear regulatory incentives. The report examines emerging trends including health and wellness certification (WELL Building Standard), net-zero carbon buildings, embodied carbon reduction, and the integration of green building certification with broader ESG investment frameworks.