Why Sustainability?
Investing in sustainable properties isn't just about protecting the environment—it's a smart financial strategy that future-proofs your investments.
At EcoSourced Property, we believe in the power of sustainability to deliver both economic and social returns.
Explore the many ways that sustainability can enhance your property investments and secure long-term value:
Future-Proof Property
Investing in sustainable properties is a strategic move that safeguards your investments against future market shifts. As global awareness of environmental issues increases, properties that comply with sustainability standards are better positioned to retain and grow their value. This means that by choosing sustainable investments, you are ensuring that your assets remain relevant and profitable in an evolving market.
With increasingly stringent regulations aimed at reducing environmental impact, sustainable properties ensure you stay ahead of compliance requirements. By investing in properties that meet or exceed current standards, you avoid the costs and penalties associated with non-compliance and are well-prepared for future legislative changes.
'“As the trend toward tighter compliance accelerates, investors must ensure they have the expertise to stay on top of a rapidly shifting regulatory environment."
ESG and Real Estate: The Top 10 Things Investors Need to Know - CBRE 2022
Environmental and Social Impact
Sustainable investments don't just benefit your portfolio—they also contribute positively to the environment and society. By reducing carbon footprints, conserving resources, and promoting healthier living conditions, sustainable properties support global efforts to combat climate change and foster social responsibility. This commitment to sustainability can enhance your reputation as an investor who cares about more than just financial returns.
“The momentum to integrate Environmental, Social, and Governance (ESG) factors into all facets of the property market, whether driven by government or market forces, shows no signs of abating in 2024."
ESG: What is in store for 2024? - Frank Knight Global Property Market Insight 2024
Green Premiums and Brown Discounts
Sustainable properties often command higher market values and rental rates due to their energy efficiency, lower operating costs, and overall desirability. This "green premium" means that investing in sustainability not only benefits the environment but also enhances your financial returns.
On the flip side, properties that fail to meet sustainability standards are at risk of "brown discounts"—devaluations due to higher operational costs, potential non-compliance penalties, and reduced market appeal. By avoiding such properties, you protect your investments from devaluation.
“Globally, around half of respondents believe that green/sustainable buildings achieve a rent and a price premium over comparable non-green / sustainable buildings. Furthermore, over 30% of respondents suggest that, even if there is no rent or price premium, buildings not classed as green or sustainable are subject to a brown discount"
The future of real estate valuations: The impact of ESG - RICS 2024
Attractive to Tenants and Buyers
Sustainable properties are highly attractive to tenants due to their lower running costs and healthier living environments. Energy-efficient homes and offices not only reduce utility bills but also offer a more comfortable and productive atmosphere, making them a preferred choice for renters and buyers, increasing liquidity.
“Over nine in 10 (92 per cent) property investors have received requests from tenants for some form of sustainable feature in the past 12 months"
Tenant Demand for Sustainable Properties Grows - Financial Times 2024
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