The Effect of Green Building to Decrease Operational Expenditure of Property Development in Indonesia

The green building concept is a solution that has a role in sustainable development. However, there are still obstacles in applying green building concept from the perspective of property developers, that high initial investment costs. Many theories state that implementing green buildings can reduce operational and maintenance cost. This study aims to analyze the effect of green buildings to decrease in operational expenditure on apartment properties in Surabaya, Indonesia. This research was conducted by online questionnaire with descriptive analysis and regression analysis to determine the effect of green building variables on decreased operational expenditure. The results of this study show that the variable of green building can affect to reduce operational expenditure by use of eco-friendly roof, use of eco-friendly glass, use eco-friendly light, water-saving with rainwater harvesting, and building design with renewable energy. The effect of green building decrease in operational expenditure by 58.3%. The implication of this study is strategies in planning the application of green building concepts, especially at planning and operational stages.