Impact Of Innovation (In) and Indoor Environmental quality (Eq) features on residential property price and rental

Abstract

The encouragement from government through Green Technology Policy as well as the widespread of green building design implementation has brought to positive impacts on the urban real estate market. Indoor environmental quality (IEQ) and innovation (IN) were among six criteria of Green Building Index (GBI) that need to be achieved by building owner in order to recognize their building as 'green' in Malaysia. The benefit of IEQ is to create conducive environment for human health while IN is to contribute to high quality interior environment of the building. Besides influenced their overall image, leasing and resale value of the buildings, does innovation (IN) and indoor environmental quality (IEQ) features will give impact on real estate market in terms of price and rental particularly for residential building property? Therefore, this paper will review the broad literature regarding the impacts of indoor environmental quality (IEQ) and innovation (IN) for residential building property and its implication to towardsproperty price and rental. The early hypothesis of this paper anticipates that innovation (IN) and indoor environmetal quality (IEQ) features will indirectly increase residential property market price and rental. From this paper, it is hope that the positive impacts of these features will encourage building owners, developers and other main development actors to put these criteria into the same consideration as other criteria in GBI as one of the way to compensate the impact of the building towards economic, environment and social.