Green buildings outperform as GBCSA launches training of next-generation certification tool

As demand grows for buildings that can prove their good ESG performance, South Africa’s leading green building certification body, the Green Building Council South Africa (GBCSA), has launched training on its new Green Star New Build V2 rating tool for new buildings and buildings that have undergone major refurbishments.

It’s a next-generation green building certification framework – the first substantial update to the Green Star tool since its initial development in 2008. Developed over two years of market research and stakeholder engagement, Green Star New Build V2 ensures that South African property keeps pace with global best practices and increasing market demands, while broadening the definition of what it means to build green and be future-ready.
 
“Buildings are shaped by people. The Green Star New Build V2 training will equip developers, professionals and contractors with the knowledge and frameworks to shape the buildings of tomorrow,” says GBCSA Head of Technical and Executive Director, Georgina Smit. “Green Star New Build V2 is designed to go beyond mere building efficiency. It provides a framework to ensure green buildings are resilient to energy insecurity, water scarcity, and rising temperatures.”
 
The launch of the Green Star New Build V2 training comes at a pivotal time for South Africa’s property sector. Certified property assets are consistently outperforming their non-certified peers, with investors and tenants increasingly rewarding proven sustainability. According to the 2024 MSCI South Africa Green Annual Property Index, certified prime and A-grade offices yielded returns of 10.1%, compared to 8.9% for non-certified buildings (total return). At the same time, the 2025 edition of Green Building in South Africa: A Guide to Costs and Trends reports that the average premium for certified offices has dropped from 5.95% to 2.40% between 2009 and 2024. Some projects achieved certification at a cost of less than 0.5%.
 
Together, these findings confirm the financial advantages of green-certified buildings – stronger returns, more resilient cash flows, and a declining cost barrier to entry. Equipping property professionals with the knowledge to apply Green Star New Build V2 is essential to maintaining this momentum and embedding measurable sustainability across the market.
 
GBCSA CEO, Lisa Reynolds, says: “The business case is crystal clear: certified green buildings reduce risk, attract tenants, and protect long-term value. Our Green Star New Build V2 tool gives the market a practical tool to deliver those outcomes with credibility.”

What is Green Star New Build V2?
Green Star New Build V2 provides a unified framework for defining what constitutes a good green building in our market. It applies across all building asset categories, including commercial, industrial, and public buildings. This means a more streamlined and efficient process than its predecessor, which was individualised for each building asset type.

Some notable features of the new tool include:
Minimum performance standards for energy and water
A bigger focus on the “S” of ESG, to respond to pressing socio-economic challenges of South Africa
Broader categories include carbon, resilience, health, inclusivity, and circular economy 
Alignment with global ESG frameworks

“This tool puts climate, health, and resilience at the heart of how we design and build. It’s rigorous but practical, giving the market a credible framework to deliver future-ready buildings,” adds Georgina Smit. 

Industry Voice: Balwin Properties
 
The private sector is already implementing the new framework. Residential developer Balwin Properties not only sponsored the development of Green Star New Build V2 but is also piloting the tool for a series of Lifestyle Centres in its new developments.

Backing up Balwin’s decision to sponsor the tool, Balwin CEO Steve Brookes says, “We believe this tool is helping shape the South African sustainability market. Being involved in the pilot gives us first-hand experience with a framework that lifts local standards to global benchmarks.”

Balwin currently holds 10 6-Star Green Star certified Lifestyle Centres, one 6-Star Green Star certified office, and 12 Net Zero certifications. The company has also committed to achieving net-zero carbon buildings by 2050, with Green Star New Build V2 providing an independent, third-party framework to verify progress and reinforce trust with municipalities, investors, and customers.

“Certification isn’t just about a plaque on the wall; it’s a mindset shift. Green Star New Build V2 is more aligned with where the industry is heading, and it’s raising the bar in all the right ways.”