The real estate sector is undergoing a fundamental transformation as pressure mounts to reduce its environmental impact
Responsible for nearly 40% of global greenhouse gas emissions, the industry must adopt innovative solutions to ensure a sustainable future. A large proportion of buildings were constructed before modern energy regulations, and renovation rates fall far short of the requirements for climate targets. Urgent and decisive action is essential. Regulatory demands and shifting market expectations are driving the need for change, yet the industry struggles to keep pace. Delaying sustainable transformation risks turning properties into “stranded assets,” with significant financial and operational consequences.
Employing modern technologies and sustainable practices offers not only a pathway to compliance but also a competitive edge. Property investors face several key challenges on the path to decarbonization: reducing carbon footprints in new construction, minimizing emissions from existing buildings, extending the economic lifecycle of properties, and improving energy efficiency through retrofitting. These challenges reflect a broader shift toward low-carbon properties. Studies indicate that tenant demand for sustainable spaces will significantly exceed supply in the coming years, highlighting the urgency for action.

Investing in sustainability offers tangible economic advantages. Renovations and modern technologies can reduce energy consumption and costs by 15 to 20%, while automation improves operations and lowers maintenance expenses. Sustainable buildings also command higher rental and sale prices and experience lower vacancy rates as environmentally conscious tenants increasingly prefer such properties. Early adoption of sustainable technologies ensures compliance with legal requirements and reduces the risk of obsolescence due to evolving standards. Sustainability further attracts tenants, investors, and partners prioritizing environmental goals, enhancing market positioning and access to growth opportunities.
To advance sustainable transformation, property investors should focus on energy sufficiency, energy-efficient retrofitting, renewable energy adoption, and the use of sustainable materials. Smart building technologies can help manage energy demand efficiently, while modernizing properties with up-to-date insulation and efficient systems accelerates progress. Incorporating solar, wind, and geothermal systems as well as using low-emission materials minimizes CO2 output and ensures long-term sustainability. Innovative companies set benchmarks, demonstrating the feasibility of sustainable real estate by achieving strict carbon and energy efficiency targets and integrating ESG criteria into property valuation.
The transformation of the real estate sector toward sustainability is not only an obligation but a strategic opportunity. By employing modern technologies and sustainable practices, property investors can safeguard their assets, enhance financial performance, and contribute to global climate goals.
Gunnar Gombert STRATEGY CONSULTING provides strategic support in analysis, goal setting, action planning, and implementation.