Sustainable buildings in the focus of attention of European investors
DLA Piper company investigation based on a poll of more than 100 European investors confirms that real estate sustainability becomes a more and more important factor when deciding which property to buy.
“A great proof of this tendency in Spain is the fact that rental contracts include paragraphs on sustainability, the so-called "Green clauses", more and more often”, - says Jorje Garcia, DLA Piper sustainability expert. Investors are ready to pay considerable sums of money for sustainable buildings causing minimal impact on the environment. 71% of the surveyed are ready to pay a high price for a sustainable building in order to offer their clients, purchasers or lessees objects with high sustainability rates.
The remarkable fact is that investors rely on “green” buildings particularly because of the existing demand in the market, not on the basis of their environmental responsibility. The investigation has showed that sustainability can be quite profitable since it presupposes long-term economy. Sustainable buildings propose fund savings for object service and maintenance as well as for a significant property revaluation in comparison with other constructions. Moreover, the fact of social importance of sustainable buildings which without a doubt spruces up the owner’s image should not be underestimated.
The most demanded “green” real estate assets nowadays are office buildings, commercial centres and residential houses.
In its report called “European real estate market tendencies” of 2014 PWC, an audit company, lays emphasis on the following reasons for investing in “green” real estate:
- Lessee appeal;
- Moral deterioration reduction;
- Rise in general profitability;
- Image improvement;
- Higher rental costs;
- Quality of lessees.
The main sustainable real estate purchasers are investors from Central and Northern Europe, as well as the USA where “green” building concept was born many years ago. According to DLA Piper statistics, objects of this type attract investors from Germany (32%) and Great Britain (20%). Spain with its 1% is at one of the last positions it the rating together with Norway, Hungary, Russia and Japan. The concept of “green” buildings appeared in Spain not a long time ago. According to Jorje Garcia, “during the years of real estate market rise neither developers, nor constructors, not even purchasers considered constructing sustainable buildings”. However, with the market recovery and changes in the legislation, the sustainability factor of real estate in Spain will become more and more important.
