How are agents responding to the need for sustainability?
The growth in investment in sustainable property is driven by client demand – as landlords and occupiers’ commitments to reducing their ecological footprint increase, (driven by ethics, customer demand or increased legislation) fewer green buildings are expected to fall behind when competing for customers and high returns. Investment Surveyors, understanding market and societal trends, anticipate and understand the risks and impact of demand and sustainable property investment has grown form a niche activity to a mainstream product.
There are challenges, including the high one-off costs of making buildings energy efficient, and of measuring sustainable buildings in terms of monetary returns and whilst transparent green credentials and certification are popular with clients, different standards across the world can be difficult to compare.
However, “research illustrated that property pricing is increasingly distinguishing between properties and portfolios that exhibit different sustainability-related features and resulting performance”, and Investment Surveyors strategies are driven by the desire to move towards sustainable, future proofed property portfolios.