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ULI/PwC: ESG, climate, CO2 by far the biggest drivers for value

For the past 20 years, low interest rates have been the biggest driver for real estate values. Not anymore - ESG, climate, and CO2 reduction are by far the biggest drivers for real estate value over the next 20 years. This figure from Urban Land Institute and PwC's Emerging Trends in Real Estate Europe 2023 was presented by Roel van de Bilt in early February 2023 during a conference hosted by Sociëteit Vastgoed with other speakers including Astrid Schluter, Saman Mohammadi, Annelou de Groot MRICS, Edwin van de Woestijne, Geertjen Pot, Joost Daalmans, and moderator Ron van Bloois.

When it comes to factors that determine success in the next two decades, 94 percent of this year's survey respondents stress the importance of running a socially and environmentally responsible business. The climate crisis will further drive this. This trend has only gained in prominence and relevance throughout the 20-year history of Emerging Trends Europe, bringing together past, present, and future. Developing green buildings has grown from a side-line exercise promoted by a small group who - in the absence of evidence - believed they would eventually yield the most value, to an issue that no real estate company can afford to ignore. Today, the environmental impact of real estate is recognized by everyone, but the industry still faces a challenging 20-year task.

Click here for Emerging Trends in Real Estate Europe 2023.