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The Economics of Biophilic

Writer: Carlos MonsalveCarlos Monsalve

When investing in real estate or construction, the focus is often on financial returns—higher property values, increased rental income, or profitable resale. However, an equally valuable yet often overlooked return on investment is the impact of good architecture on health and well-being. A building designed with biophilic principles is more than just visually appealing; it is inspiring, energizing, and deeply enriching to daily life. By fostering a stronger connection to nature, these spaces enhance mood, productivity, and overall well-being, ultimately elevating the quality of life for those who inhabit them. As the Canadian author, Matshona Dhliwayoh Livewayo, put it, "A happy man is a wealthy man." The good thing is that these benefits also translate directly into economic value, as healthier, more enjoyable spaces drive higher demand, quicker sales, and higher rental yields.

Although there may be an increased cost initially, investing in these biophilic principles also results in higher home and property values, increased rental incomes, and overall substantial lifecycle savings—especially when buildings incorporate passive (non-mechanical) strategies for heating and cooling that can be utilized seasonally or year-round. The unique and appealing features of biophilic homes make them stand out in the market, leading to quicker sales and potentially higher offers.

Buyers are willing to pay a premium for properties that offer a strong connection to nature, with numerous studies demonstrating the financial benefits of biophilic design. Homes with excellent landscaping can sell for up to 7% more, while those with water views may command an increase of up to 58%. Waterfront properties, in particular, can see value premiums as high as 127%, according to Terrapin Bright Green’s The Economics of Biophilia.

Beyond direct property value appreciation, biophilic homes also contribute to long-term cost savings through improved energy efficiency, reduced maintenance, and enhanced occupant well-being. Features such as natural daylighting, cross-ventilation, and thermal mass not only lower utility bills but also create healthier indoor environments, reducing reliance on artificial lighting, HVAC systems, and mechanical ventilation.

Moreover, properties designed with biophilic principles tend to foster stronger emotional connections with occupants and potential buyers. The presence of greenery, access to outdoor spaces, and the integration of natural materials enhance mood, productivity, and overall well-being—factors that are becoming increasingly valuable in the residential market. In competitive real estate markets, homes that prioritize nature integration are not only more desirable but often sell at a premium and retain their value better over time.

Urban Developments

This also applies to the design of public spaces, where the integration of nature plays a crucial role in shaping the vibrancy, safety, and economic success of urban environments. Buildings adjacent to parks, plazas, and tree-lined streets benefit significantly from increased pedestrian activity, as these natural elements create more inviting and comfortable spaces for people to walk, gather, and socialize. Studies have shown that streets with abundant greenery and well-designed public spaces encourage more foot traffic, which in turn supports local businesses by increasing their visibility and customer base.

Research also indicates that areas with extensive tree cover and well-maintained green spaces tend to experience lower crime rates due to increased natural surveillance, as more people are drawn to these areas throughout the day and evening. This phenomenon, often referred to as “eyes on the street,” (phrase coined by urbanist Jane Jacobs) enhances perceived and actual security, making these spaces more attractive for both residents and commercial tenants.

From a financial perspective, properties located near parks and green streets command higher rents and resale values. Businesses operating in these areas enjoy a considerable return on investment due to the enhanced desirability of their locations. Studies have shown that retail properties with green streetscapes can experience increased sales, while office spaces with views of nature report higher employee satisfaction, productivity, and retention. Furthermore, residential properties adjacent to high-quality public spaces often see value increases of 8–20%, with some premium locations commanding even higher percentages.

In the long run, prioritizing biophilic design in public spaces not only enhances urban aesthetics and livability but also strengthens economic resilience by fostering dynamic, safe, and prosperous communities.

Conclusion

The economic advantages, coupled with the positive impact on well-being, make biophilic design a compelling necessity in new homes. Not pursuing it really forces you to really consider the question "at what cost?"

Mon.Archi is not just about creating beautiful structures; it’s about designing spaces that enhance our quality of life. By recognizing the profound impact that architecture has on our physical and mental health, we can make more informed decisions that prioritize well-being alongside financial returns. As we continue to build and develop our environments, let us remember that the true value of architecture lies not only in its monetary gains but also in its ability to foster a healthier, happier society.

Whether you are starting your dream home journey, or already well into the design process, we encourage you to speak to your architect about some of these principles. Don't have an architect yet? sign up for a free Consultation Call with one of our qualified architects.

What are some changes you can make in your home today to create a healthier environment?

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