10 Wege, die zeigen welche Auswirkungen nachhaltige Finanzierung auf die Immobilienbranche hat 

Clementine Tanguy
Date28 November 2023

Sustainable finance is here to stay

Sustainable finance encompasses various financial activities and practices considering environmental, social, and governance (ESG) factors. It includes investment, lending, borrowing, insurance, and other financial services. The primary goal of sustainable finance is to align financial decisions with sustainable and responsible outcomes. For instance, banks offering loans to eco-friendly projects or companies incorporating ESG criteria into their risk assessments are examples of sustainable finance.

In real estate, this particular financing balances monetary objectives with beneficial societal and environmental effects. It encourages stakeholders, developers, and investors to make well-informed choices that produce financial gains and advance society and the environment. This process may entail tactics like eco-friendly building certification, socially conscious investing, and incorporating ESG considerations into financial choices.

10 ways in which sustainable finance impacts the real estate sector

As a way to balance financial goals with ESG factors, sustainable financing has been increasingly popular in the real estate industry in recent years. Let’s take a look at how the sector is being impacted.

1. Green Building Initiatives

Sustainable financing has ignited green building efforts in real estate. Developers and investors increasingly prioritize eco-friendly design and construction methods to conserve energy, water, and reduce waste. This not only enhances property value but also makes properties more attractive to tenants. Consequently, certifications like LEED and BREEAM are gaining popularity.

Read more: Deepki’s ESG regulation infographic

2. Regulatory Compliance

Sustainable finance aligns with evolving regulatory frameworks that underline openness and ESG disclosure. Companies in the real estate industry are required to report on their sustainability initiatives, risk evaluations, and mitigation techniques.

Read more: Deepki’s SFDR & EU Taxonomy Guide

3. Value Creation

Higher financial returns for investors are frequently achieved by high-performing sustainable assets because they command premium rents, draw excellent tenants, and have lower vacancy rates.

4. Resilience 

While investments in climate adaptation and disaster resilience measures help preserve property value, energy-efficient buildings can minimize operational costs over time.

Find out more: Resilience webinar

5. Tenant Demand

More and more tenants are looking for environmentally friendly residences that support their ideology and enhance their quality of life. The need to provide environmentally sensitive workplaces that promote occupant health, comfort, and productivity is thus recognized by real estate developers and landlords.

Read more: Tertiary Decree blog

6. ESG Integration

Real estate investors recognize that assets with strong ESG performance exhibit lower risk profiles, higher resilience to market changes, and increased long-term value. ESG considerations encompass energy efficiency, carbon footprint, tenant satisfaction, community impact, and governance practices. Therefore, players are integrating ESG factors into investment decisions more and more.

7. Innovative Financing Mechanisms

Sustainable finance has introduced innovative financing tools for real estate projects. Green & social bonds and sustainability-linked loans enable real estate developers to access capital while exhibiting their commitment to ESG goals. These financial tools often have advantageous terms for projects that meet specific sustainability targets.

8. Impact Investing

Investors categorically and increasingly look for initiatives that produce favorable social and environmental results and financial gains. This strategy supports programs with a positive social impact, such as affordable housing and community development.

Connect with Deepki’s experts to understand how your real estate business can make a tangible impact through sustainable investment.

9. Data and Technology

Sustainable financing is a factor in adopting data-driven technologies that monitor and optimize resource use in real estate. Data analytics through ESG platforms, IoT devices, and intelligent building systems help reduce operational costs and improve energy efficiency.

Take a look at our webinar and understand how our Deepki Ready™ platform can help your business.

10. Stakeholder Engagement

Stakeholder involvement within the real estate ecosystem is encouraged by sustainable finance. A comprehensive strategy for sustainable development is fostered through cooperation between developers, investors, tenants, local communities, and governing entities.

In conclusion, sustainable finance transforms the real estate sector by incorporating ESG factors into financial decisions, promoting innovation, and assisting in producing long-term value while addressing more significant societal and environmental issues.

Take a look at Deepki’s ESG & Asset Value white paper, which sheds light on how environmental performance can be incorporated into valuation and how this can be used to implement real estate retrofitting strategies.