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The value of European real estate assets increases on the back of greenium

As sustainable assets continue to provide a 'green premium,' the property prices of over half of Europe's real estate managers have increased by up to 25%, according to research from ESG data supplier Deepki.

The value of assets for all 250 commercial real estate management professionals assessed increased as a result of buildings rated more sustainable and possessing greater pricing power, according to the surveyor.

In October 2022, Pureprofile did research on property managers in the United Kingdom, France, Germany, Spain, and Italy.

Over a quarter (29%) of respondents indicated that real estate asset values have improved by between 11 and 15%.

56% of managers also reported rising rental yields, with yields increasing between 16% and 25% as sustainable buildings continued to benefit from decreased servicing costs due to increased efficiency measures.

Sixty-four percent of respondents indicated industrial properties were most likely to attract a green premium, followed by residential properties (61%) and healthcare facilities (48%).

“Improving sustainability across real estate is not just demonstrably positive for the environment, it also improves returns,” said Vincent Bryant, CEO and co-founder of Deepki.

“Commercial real estate managers who are taking steps to understand and enhance their ESG credentials are helping to meet their Net Zero goals and deliver better performance for investors. Buildings with better sustainability ratings are more likely to be occupied which increases their overall rental income," he added.



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