Impact of ESG factors on the real estate market increasing

The growing awareness of investors is also beginning to be reflected in the condition of the housing sector. Currently, it is recording the fastest development in the sustainable real estate group. Real estate is one of the key industries for the implementation of the European Green Deal. The European Union aims to achieve complete climate neutrality, while, according to data from the European Commission, buildings are responsible for 36 percent of CO2 emissions and 40 percent of energy consumption in Europe. 75 percent of the building stock of the old continent is energy inefficient. At the same time, only 1 percent of the resources are renovated annually.

"According to the calculations of the European Commission, achieving the assumptions of global ESG support programs in the industry requires launching investments worth up to €270 billion per year, which exceeds the financial capacity of the public sector. Therefore, it has become important to create a stable environment for making investment decisions, attracting private capital," Marcin Malmon, Deputy Director, Advisory and Valuation Team for the Real Estate Sector in the Deal Advisory Department at KPMG in Poland, assessed.

(WBJ)