Sustainability aspects and environmental criteria are playing an increasingly important role in financing decisions and real estate investments. Investors and financiers are concerned with aspects of climate protection and environmental compatibility as well as social concerns. This is the result of the DIFI Report (German Real Estate Financing Index) of the real estate service provider JLL in cooperation with ZEW - Leibnitz Centre for European Economic Research from the first quarter of 2020.
In the DIFI report, real estate experts were asked what role green building certifications and ESG criteria play in investment and financing decisions. Almost two-thirds of the experts surveyed said that the ESG criteria of environmental, social and governance play a medium to major role in financing and investment decisions. As many as 29 percent are in favor of a minor influence. JLL also refers to international studies that show that office buildings with green building certifications are sold or leased at higher prices than buildings that do not have certifications.
Around 50 percent of respondents also think that ESG sustainability aspects and green building certifications have an impact on the market value of the property and affect the financing volume. According to survey results, half of the respondents also said they already have up to a 10 percent stake in green building properties in A-locations. It is speculated that this share will increase in the coming years. One of the reasons for this will be that more and more cities are planning to accept only climate-neutral properties in city centers from 2030.
Source: JLL
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