The global green building market is anticipated to grow at a CAGR of around 13% during 2015-2020, according to a report from Research and Markets. Strong growth is attributed in part to the rising awareness of global warming and climate change issues and the knowledge that green building techniques lead to a lower level of greenhouse gas emissions.
Other drivers of growth include multiple government policies supporting green building construction, growing awareness of energy efficiency, and the cost-effectiveness of green buildings. Leading global players include BASF, DuPont, Owens Corning, PPG Industries, Saint Gobain, Lafarge, Kingspan, Forbo Intenational, Interface and Alumasc Group.
Though the US has the biggest market for green building construction, developing economies in Asia-Pacific are also showing significant growth in this sector, according to the report.
Last week, Fannie Mae announced that, for the first time, it will provide lower interest rate loans to green multi-residential buildings.
Fannie Mae will grant a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan for buildings with a green building certification. For example, if the market interest rate is 4 percent on the multifamily loan, the new rate is 3.9 percent with this pricing break. On a $10 million dollar loan amortizing over 30 years, the owner would save $95,000 in interest payments over a 10-year term.