Aug 29th 2024 Sustainability and real estate

Sustainability is a key issue in almost all sectors of the economy today - and the property sector is no exception. But what exactly does sustainability mean in this context? It is often associated with environmentally friendly measures such as waste separation or the reduction of air travel. In the property sector, however, it is far more complex and also offers economic benefits. The question that arises is this: Can sustainability in property projects be economically viable?
 

Why invest in sustainable property?

The increased interest in sustainable properties comes from both investors and users. But why is it worth investing in this type of building and what advantages do they offer?

• Easier letting and higher sales proceeds: Sustainable properties are often easier to let and sell. Sales values can be up to 30 % higher, while rental income can also increase by up to 10 %.
• Cost savings on maintenance and energy: More efficient energy use can significantly reduce operating costs in the long term, which not only benefits the environment but also your wallet.
• Improved comfort and safety: Sustainable buildings are characterised by better insulation and a stable indoor climate. This not only ensures greater living comfort, but also promotes the health and safety of residents.

In addition to the economic incentives, there is also growing pressure from legal requirements. International goals such as the United Nations' Sustainable Development Goals are forcing the industry to constantly improve energy efficiency and resource conservation. In many countries, property owners are already obliged to disclose energy performance indicators - as is the case in Austria, where no property transaction can take place without a valid energy performance certificate.
 

A look at the history 

The roots of sustainable property go back around 30 years. Back then, the first certification systems were created to reduce the environmental impact of the property sector. Labels such as LEED (USA) and BREEAM (UK) led the movement. Over the years, a large number of local and international standards have developed that assess various aspects of sustainability - from energy efficiency to the social and economic impact of a building.
 

The shift towards holistic sustainability

Today, the real estate industry is no longer just about minimising environmental impact. Modern sustainability labels pursue a holistic approach that combines the three dimensions of sustainability - environment, society and economy. This also includes aspects such as health, mobility and the flexibility of spaces. Proactive measures, such as the provision of bicycle parking spaces or the use of sustainable building materials, also promote a positive ecological balance.
 

How is sustainability measured?

For many companies, sustainability is an integral part of their strategy. This is often measured using ESG (Environmental, Social, Governance) criteria, which take into account environmental and social standards as well as good corporate governance. Although numerous sustainability labels exist, an international and standardised assessment is often difficult as local peculiarities have to be taken into account. The Global Real Estate Sustainability Benchmark (GRESB) was introduced to create objective comparability. This system assesses the sustainability performance of property portfolios worldwide according to ESG criteria and makes it possible to compare different portfolios with one another - regardless of the geographical location or the size of the portfolio.
 

Sustainability as an opportunity

The days when sustainability was seen purely as a marketing tool or an expensive additional measure are over. Sustainability has become a key factor in the property industry - and not just from a moral point of view, but also from an economic one. Investing in sustainable buildings is not only good for the environment, it also offers tangible economic benefits. However, sustainability does not only concern large companies or governments. Every individual can also make a contribution through conscious behaviour in everyday life. Sustainability does not end with the construction of a building - it continues in everyday living.