The move towards eco-friendly living: What the sustainable future holds for real estate

The future of sustainability in real estate is bright, with exciting trends that will continue to shape the sector in the coming years.

As consumers and tenants increasingly demand more eco-friendly living and working spaces, developers are responding by embracing new technologies and design practices that prioritise energy efficiency and environmental responsibility.

One major trend on the horizon is the rise of smart buildings. These buildings, equipped with cutting-edge technologies like automated lighting, intelligent heating systems, and energy-efficient HVAC solutions, are designed to optimise energy use and reduce waste(1).

As smart technologies become more affordable and accessible, we can expect these buildings to become the norm, providing tenants with greater comfort while simultaneously lowering energy consumption.

Another important trend is the shift towards net-zero energy buildings. These buildings generate as much energy as they consume, often through renewable sources like solar or wind power(2).

As the UK works towards its goal of net-zero emissions by 2050, more developers will be incorporating sustainable features into their designs, including solar panels, green roofs, and rainwater harvesting systems. This trend not only helps to reduce a building’s environmental footprint but also positions developers as leaders in sustainability(3).

With the Minimum Energy Efficiency Standards (MEES) set to become more stringent, developers will increasingly look to retrofit older buildings to meet modern energy efficiency standards(4). Retrofitting not only ensures compliance with regulations but can also boost the value and marketability of older properties.

These trends indicate that sustainability will continue to be a driving force in the real estate sector. Developers who stay ahead of the curve will not only meet regulations but will also create more attractive, energy-efficient spaces for tenants and buyers.

Bibliography

1 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

2 Housing and net zero (Accessed May 2025) https://commonslibrary.parliament.uk/research-briefings/cbp-8830/

3 Property investors boosting sustainability budgets due to tenant pressure, survey finds (Accessed May 2025) https://www.edie.net/property-investors-boosting-sustainability-budgets-due-to-tenant-pressure-survey-finds/

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