Green Housing Trends: How EDGE Certification Is Shaping the Future of Residential Buildings
Rethinking How We Build Homes
As the effects of climate change become harder to ignore and cities continue to expand, the way we design and build our homes is evolving. Sustainability is no longer just a “nice-to-have”, it’s becoming the foundation of responsible development. Around the world, people are starting to understand that the buildings we live in have a huge impact not only on us as the user but also on our planet.
The World Bank (2024) reported that buildings are responsible for almost 40% of global energy-related carbon emissions, making housing one of the most powerful levers for climate action. Interestingly, more people are also making the connection between sustainability and comfort. They’re asking: What kind of home will help me live better? And the answers keep pointing toward sustainability — homes that are designed with efficiency in mind, utilizing daylighting, natural ventilation, and materials that are healthier for both people and the planet.
At the center of this transformation is EDGE (Excellence in Design for Greater Efficiencies) — a certification developed by the International Finance Corporation (IFC), a member of the World Bank Group. EDGE is designed to make green building practical and accessible, especially for housing markets in developing countries. It gives developers a measurable way to improve a building’s energy performance, water use, and material efficiency, while keeping affordability in mind.
Several factors are fueling this change:
Environmental awareness – More homeowners are taking personal responsibility for reducing their carbon footprint.
Energy and water efficiency – Rising costs and resource scarcity make efficient homes a smart investment.
Health and comfort – Natural ventilation, good daylighting, and non-toxic materials improve wellbeing.
Long-term value – Green-certified homes hold their value better and are cheaper to operate.
The result? Sustainability is no longer an “alternative” path in housing — it’s becoming the standard. Developers and investors are starting to align their projects with global goals, making sure that homes contribute to both economic and environmental resilience.
Why Homebuyers Are Choosing Green Homes
We’re witnessing a clear shift in how people think about where they live. In Indonesia, young consumers are emerging as a key driving force behind the growing demand for sustainable housing. A study presented at the International Conference of Organizational Innovation (ICOI, 2019) by Wijayaningtyas et al. found that environmental knowledge has a significant and positive influence on the intention to buy eco-friendly homes. The more young consumers understand the importance of maintaining and preserving the environment, the stronger their motivation to choose sustainable housing.
Living in a green home means more than just feeling good about your choices. It’s about real, measurable value:
Lower utility bills through reduced energy and water use.
Better indoor air quality and more natural light.
Greater resilience against heat, flooding, or resource shortages.
Higher resale value as the market shifts toward greener standards.
In short, sustainability has become a core expectation that defines modern living. Homebuyers are not just purchasing a house; they are investing in a healthier lifestyle, long-term savings, and a future-ready home that supports both people and the planet.
What Makes EDGE Different
There’s no shortage of green certifications out there, but what sets EDGE apart is its simplicity and practicality. Instead of overwhelming project teams with complex scoring systems, EDGE focuses on three key metrics:
Energy Efficiency – Reducing overall energy use through passive design, efficient systems, and sometimes renewable energy.
Water Conservation – Implementing smart water-saving strategies like low-flow fixtures.
Material Efficiency – Encouraging the use of low-carbon, recycled, or locally sourced materials to reduce embodied carbon.
These metrics are supported by EDGE’s data-driven simulation tool, enabling developers to evaluate design options in real time and understand the tangible impact of each decision on a project’s overall efficiency and performance. In countries like Indonesia, where affordability is just as important as sustainability, EDGE is particularly valuable. It strikes a balance: helping developers build eco-friendly homes without driving up costs. As IFC puts it, EDGE “bridges the gap between aspiration and action.”
Building the Future of Green Real Estate
At Sustainahaus, we’ve witnessed Indonesia’s housing landscape evolve toward a more sustainable future. As one of the country’s leading sustainability consultants, our team has helped developers bring EDGE-certified homes to life across multiple regions. Recognized by IFC as an EDGE Premier Provider, we are committed to guiding the built environment toward measurable, impactful sustainability.
Our work goes beyond certification. Each project we support is designed to perform better, last longer, and improve everyday living by reducing energy and water demand, optimizing local and low-carbon materials, and enhancing indoor comfort. We’ve seen this in action through our projects, such as Citraland Celebes and Morizora Cluster, both of which achieved EDGE Advanced Preliminary Certification.
These projects demonstrate that sustainability delivers tangible value for both developers and residents. For developers, integrating EDGE standards provides a clear competitive edge—reducing long-term operational costs, strengthening market reputation, and unlocking access to green financing opportunities. The data-driven design process also supports smarter decision-making, ensuring every sustainability feature translates into measurable performance and marketable benefits.
For residents, EDGE-certified homes mean living in spaces that are comfortable year-round, with better air quality, lower energy and water bills, and reduced environmental impact. Beyond efficiency, these homes foster a sense of wellbeing and resilience—helping communities thrive as cities grow denser and climate pressures intensify.
Every project is an opportunity to prove that sustainability and affordability can go hand in hand, empowering people to live better while caring for the planet. Through continued collaboration with developers and partners, we remain committed to shaping Indonesia’s transition toward a more sustainable, inclusive, and resilient built environment.
References
Green building projects — Sustainahaus. (n.d.). Sustainahaus. https://www.sustainahaus.com/green-building-projects
Green buildings. (n.d.). IFC. https://www.ifc.org/en/what-we-do/sector-expertise/climate-business/promoting-sustainable-innovation/green-buildings
Sustainable and Affordable Housing Report - World Green Building Council. (2023, June 22). World Green Building Council. https://worldgbc.org/article/sustainable-and-affordable-housing/
Wijayaningtyas, M., Nainggolan, T. H., Suarniki, N. N., & Lukiyanto, K. (2019). Examining the Young Consumer Purchase Intention of Eco-Friendly Home: Insight from Indonesian. Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019). https://doi.org/10.2991/icoi-19.2019.41
World Bank Group. (2024, December 13). How the Gap Fund supported the design of green, resilient, and affordable homes in Indonesia. World Bank. https://www.worldbank.org/en/news/feature/2024/12/03/green-homes-resilient-cities-tackling-indonesia-housing-crisis
