Significant barriers to green procurement in real estate development

- Real estate developers in China have limited understanding of green procurement.
- Existing green building polices are ineffective for promoting green procurement.
- Lack of economic incentives is a key barrier to green procurement.
- Cost increase blocks small and medium-sized developers to adopt green procurement.
- Authoritative certifications will help developers chose proper green materials.

The procurement and use of green building materials are considered effective methods for improving environmental performance of real estate products. However, green procurement is still in its infancy and has not been widely adopted in the real estate industry especially in those developing countries such as China. Barriers that hinder real estate developers from adopting green procurement merit detailed investigation. This study examines the knowledge of real estate developers in adopting green procurement and the barriers encountered in real estate development within the context of the Chinese real estate business. Research data used for analysis are collected through questionnaire surveys to real estate developers in Chongqing of China. The hierarchical cluster analysis technique is employed to conduct a comprehensive analysis for identifying significant barriers. The semi-structured interview is used to verify and interpret the results of hierarchical cluster analysis, and develop suggestions for mitigating those significant barriers in promoting green procurement. The study reveals that real estate developers in Chongqing, China have little understanding of green procurement and green building materials, and few of them have experience in adopting green procurement strategy. The most significant barriers contributing to this include little marketing benefits and lack of incentive policies. The research findings provide valuable reference for assisting relevant government departments and developers to take measures towards mitigating the green procurement barriers in real estate development.