While sustainability in real estate presents some challenges, it also opens up a wealth of exciting opportunities.

As demand for more eco-conscious buildings grows, developers, property managers, and landlords have a chance to lead the way in creating energy-efficient, environmentally friendly spaces that attract a growing number of tenants and buyers interested in sustainability(1).

For property developers, the shift towards energy-efficient building designs offers a significant opportunity. The integration of smart building technology-such as energy-efficient lighting, HVAC systems, and solar panels-can make properties more attractive to eco-conscious buyers and tenants(2).

In fact, green buildings are becoming a growing trend, and many buyers are now willing to pay a premium for properties that meet high sustainability standards(3).

In addition to new builds, retrofitting existing buildings to meet the requirements of the Minimum Energy Efficiency Standards (MEES) is another significant opportunity(4). Starting in 2025, properties with an EPC rating below “E” will be legally prohibited from being let or sold, meaning landlords and property owners must act now to upgrade their buildings.

Retrofitting not only helps properties comply with these regulations but also makes them more energy-efficient, reducing running costs for tenants and increasing property values over time.

There’s also a rising demand for sustainable materials in construction. The use of recycled, eco-friendly, or locally sourced materials can greatly reduce the environmental footprint of a development. Not only does this contribute to sustainability goals, but it can also give developers a competitive edge in a market that increasingly prioritises environmental responsibility(5).

By taking these steps toward sustainability, businesses in real estate can benefit from higher property values, reduced operating costs, and enhanced appeal to tenants who value green spaces. Sustainability is no longer just a regulatory obligation; it’s a business opportunity.

Bibliography

1 Why Green Buildings? (Accessed May 2025) https://ukgbc.org/our-vision/why-green-buildings

2 UK housing: Fit for the future? (Accessed May 2025) https://www.theccc.org.uk/wp-content/uploads/2019/02/UK-housing-Fit-for-the-future-CCC-2019.pdf

3 Valuation: green premium vs brown discount (Accessed May 2025) https://ww3.rics.org/uk/en/modus/built-environment/homes-and-communities/home-valuation-green-initiatives-residential.html

4 Domestic private rented property: minimum energy efficiency standard - landlord guidance (Accessed May 2025) https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

5 Building to net zero: costing carbon in construction (Accessed May 2025) https://committees.parliament.uk/publications/22427/documents/165446/default/