Global research consultancy Frost & Sullivan (F&S) noted that while green building practices continued to gain momentum in South Africa, the sector still faced challenges, including a misconception of the costs involved in green design and construction, and a lack of appropriate policy and legislation.

However, F&S building technologies programme manager David Winter added that these challenges were not likely to act as constraints for long, as consumers' environmental awareness and interest was increasing, and corporate tenants and residential homeowners were demanding green initiatives in the design, construction and operation of buildings.

F&S said that builders were increasingly seeking to design and implement green practices, and companies were seeking to enhance their corporate social responsibility and market differentiation, and found that green buildings provided a way to meet the expectations of socially-aware stakeholders, and respond to the effects of the built environment on the natural environment.

In spite of the upswing in the general awareness of the market, F&S maintained that South Africa lacked the policy, legislation and financial support that impelled companies to adopt green practices over the entire lifecycle of a building.

"International markets that have achieved rapid and sustained growth have done so on the back of significant legislative influence that requires companies to comply with green building standards. They have also been motivated by rebates and discounts to adopt green initiatives," stated Winter.

Currently, South Africa had only the South African National Standards 204 building codes for energy efficiency, to which compliance was voluntary.

These codes were expected to be introduced into the National Building Regulations during 2010, requiring all new construction projects to meet a minimal level of energy efficiency.

However, F&S added that the Power Conservation Programme proposed by Eskom would be a welcome initiative.

"While the effects of both of these initiatives will have a positive effect in the long run, the lack of large-scale legal application mandating green building practices will continue to restrain the market for the next few years," noted Winter.

Despite this lack of legislation, the demand for green building practices and initiatives would accelerate the development of the market in South Africa. Increasing demand for rated green buildings was also expected to encourage more end users to adopt green initiatives.

Supplier participation in the design and construction of the initial stock of rated green buildings was not only important for establishing the supplier's brand and commitment to green practices, but also for harnessing a sizeable market share.

"In a market where end users are overwhelmed by green building information and underperforming products and services, involvement in highly publicized early adoption products is likely to attract end-user trust and, consequently, enhance revenue growth," observed Winter.

Many multinational companies operating in South Africa were headquartered in countries where green building was a necessity and were mandated by their executive boards to operate within green buildings, stimulating demand for green properties in South Africa.

Winter said that a measure of green building market awareness was gauged by the number of companies applying to a green building council for membership.

"The Green Building Council of South Africa (GBCSA) has experienced a membership growth rate of over 100% a year since it opened for membership in May 2008, and is expected to continue to grow for the next few years as the market develops."

The council's targeted marketing campaigns and yearly symposiums aimed at educating consumers within the built environment, particularly corporate tenants.

The GBCSA's yearly convention and exhibition would be held in Cape Town in September 2010.