Marjia Hossain

Issues related to sustainability and climate change have widely generated the interest of both academics and practitioners. The negative impacts of climate change are now substantiated through scientific evidence. The built environment is one of the major carbon emitters in any economy that could have a clear impact towards the battle against climate change. Though much research has been initiated to reduce carbon emissions from the built environment or to make it more sustainable, it is not well known to what extent commercial property valuers are incorporating sustainability and climate change issues while valuing properties. Valuation advice produced by professional valuers are used by investors, occupiers and lender and therefore, if these advice lack in terms of sustainability, it could have far reached impacts within the built environment. Though some research has been initiated in Australia, in the UK research is scarce on valuers’ perception of sustainability. To understand that research was undertaken at the University of Reading as part of a PhD thesis using a mixed methods approach that included a Survey and 32 Interviews of valuers, investors, owner occupiers and lenders. Among other things, this research found some challenges faced by valuers in the UK that are working as barriers to incorporate sustainability in the valuation methodology. These include valuers’ reliance on third party for data such as EPC upgrade cost and environmental assessments, lack of data related to sustainability of the subject property as well as comparable property, lack of evidence for sustainability premiums or discounts, issues related to time constrains, fees, costs and client’s pressure, lack of education and training of valuers on sustainability and climate change issues as well as the use of traditional methodology to value properties. Addressing and working on these challenges are paramount to move forward for a more sustainable future.

Purpose This paper investigates the extent to which commercial property valuers in the UK refer to Royal Institution of Chartered Surveyors (RICS) professional standards and guidance on the inclusion of sustainability in valuation reports. Data collection, analysis and reporting related to sustainability attributes is examined, as well as the perceived importance of these attributes to clients and any value impacts that are associated with them. Design/methodology/approach An online survey of UK commercial property valuers was conducted from July to September 2019. The survey included both structured and open-ended questions. Findings Reference to RICS standards and guidance on sustainability has improved since earlier research. However, progress on data collection is still limited. At the time of the survey, UK valuers indicated that sustainability attributes were of more importance to owner-occupiers than investors and lenders. UK valuers also indicated that, out of a range of sustainability attributes, only certification was influencing market value (MV) and investment value (IV) to any great extent. Research limitations/implications The online survey had 53 responses and this limited the ability to draw definitive conclusions. Hence, whilst the results may be indicative of the perceptions of some valuers of the significance of sustainability-related matters in the UK, the sample is not large enough to be considered representative of the opinions of property valuers per se in the UK. Practical implications Explicit reflection of sustainability in market or investment values is still limited in the UK valuation practice, but there are challenges faced by valuers that need further investigation, including difficulties in pricing sustainability attributes. Originality/value This is the first empirical investigation of the perception of sustainability by valuers in the UK commercial property market since the 2012 survey reported by Michl et al. (2016).

This study aimed to understand the sentiments and acceptance of Generative AI (GenAI) for digital cost management in UK construction businesses by investigating the ethical, technical, market entry, and operational requirements of GenAI in this context. Using a qualitative approach that covered various themes, a multiple case study research strategy was employed, involving micro, small, and large organisations. Sentiment analysis, a branch of natural language processing, was utilised to analyse interview findings, providing insights into participants' emotional undertones and opinions. The study involved four case studies with nine participants from micro, small, large, and academic organisations. These participants provided insights into the ethical considerations, regulations, maintenance, and operations of a GenAI platform for digital cost management. The findings were presented descriptively across four themes: ethics, market entry, technical operations, and operations. The study found a need for a balanced approach to ethics, emphasising transparency and regulatory compliance. Market entry, adaptability, regulatory compliance, and affordability were identified as key factors influencing the adoption of GenAI tools. The technical operations theme revealed a positive sentiment towards the operational benefits of GenAI, such as improved efficiency and decision-making, but also emphasised the need for professional oversight. Operational challenges included workforce training and quality assurance. The implications of these findings are significant for the adoption of BIM and GenAI in the construction sector, especially among SMEs. The integration of these technologies promises to revolutionise operations, offering enhanced efficiency and collaboration. However, challenges such as perceived complexity, initial investment, and the need for skilled personnel must be addressed. The study suggests that overcoming these barriers requires a concerted effort from industry stakeholders, policymakers, and academia to ensure the effective adoption and implementation of BIM and GenAI in the construction industry.

Seminar Presentation at the 19th European Real Estate Society Education Seminar