This week world leaders joined forces at a milestone conference to compose a plan to tackle the climate crisis before it is much too late. The 26th UN Climate Change Conference, more commonly known as COP26, united almost all countries to discuss the strategies to save our planet. To avoid world temperatures rising by 1.5 degrees, achieving net-zero by 2050 is crucial. Hence, each industry across the UK and the world must adapt quickly to tackle the crisis. The question is, how is the world of real estate going to proceed and will the market modify its practices?

Each party in real estate is now more involved than ever as the world shifts its focus to sustainable living and healthier wellbeing. The criteria around the factors of Environmental, Social and Governance (ESG) now hold more importance to all as the climate clock is ticking. Moreover, this is true whether you are a property developer, investor, or homeowner.

The Clock is Ticking. What Does the Future Hold for Real Estate?

We cannot escape science and the truth is, we cannot stop the clock.

To illustrate the percentage of global carbon emissions released, the World Economic Forum conducted some research. Study shows that commercial and residential real estate is responsible for around 40% of global carbon emissions.

As we begin to build back from the pandemic, we must look ahead and break out of normality and comfort zones. The real estate market will need to pivot to combat the climate issues because we have only 30 years to save the planet. Unsurprisingly, many global business giants already have net-zero carbon targets in place and a substantial proportion of these businesses hope to attain this by the year 2030.

Looking to Invest in a Greener Future?

Property investors and landlords can secure the greenest credentials for buy-to-let properties by investing in new-build developments. Tenants and investors are becoming more environmentally conscious, so seeking out the most sustainable properties.

New-build properties generate smaller carbon footprints in comparison to older properties. A smaller footprint is released because the design of new builds consists of sustainable and innovative materials. What can property developers employ to ensure they attract the largest pool of property investors who are looking to invest in a greener future?

Double or triple glazing windows  

Double glazed windows will trap in the warmth meaning the central heating will not need to be switched on as often. Alongside dropping the price of bills, it will also reduce emissions.

LED bulbs

Research suggests the move from halogen bulbs to LED bulbs could reduce CO2 emissions by 1.26m tonnes. As a result, this will lower the footprint of homes.

Charging points for electric cars 

Currently, there are over 345,000 pure-electric cars on the road in the UK, or 675,000 in total, if you include the plug-in hybrid models. The number of electric vehicles on the road will only grow. So, adding an electric charging point to your development could attract a growing market of potential tenants.

Solar energy 

Solar power is a low carbon, renewable energy alternative. Implementing this into new build properties will significantly drop the bills, making it an attractive leasing opportunity for tenants.

New boilers, effective insulation and smart meters will also improve the energy efficiency of properties.

Real Estate & COP26

CityRise Verdict

The climate crisis has driven the momentum for a sustainable change in the real estate sector. COP26 will no doubt speed up this force. With the hopes of adopting carbon-neutral practices immediately and implementing them as the industry aligns the real estate strategy to corporate targets around the globe.

Energy-efficient homes have proved to secure higher rents than buildings with lower EPC ratings. For property investors, this results in letting out properties for a higher price per month. In turn, this will increase the ROI for investors in the coming years.

A sustainable way to deal with carbon emissions is through new build properties. Historic England suggests ‘thoughtfully adapting’ old buildings could reduce emissions by more than 60%. At CityRise, we work closely with trustworthy developers. Including property developers that specialise in conversions and new builds. Many of the developments we sell are designed to the highest specifications and built using sustainable materials. We believe now is the right time to invest in greener properties. Whether you are looking for a character conversion or a new build, our team of experts are here to guide you through your property journey.