Sustainability in the real estate sector: How to protect your property from loss of value

The European Union (EU) has stipulated that all buildings in the EU must be climate-neutral by 2045, i.e. they must no longer produce any greenhouse gas emissions. The Bavarian Climate Protection Act even stipulates climate neutrality by 2040.

For property owners, this means enormous pressure to take action to renovate their buildings to make them more energy-efficient and to switch to renewable energies.

Property owners who do not invest in energy-efficient refurbishment in good time risk a considerable loss in the value of their property. Buildings with a poor energy efficiency rating are becoming increasingly less attractive on the market.

Added to this are rising energy costs and possible regulatory risks such as CO2 taxes. It therefore makes economic sense for property owners to invest in modernization at an early stage to secure the value of their property in the long term. Only by acting now and investing in sustainable building technologies they can benefit from the opportunities of change and secure competitive advantages.

The implementation of ESG criteria (Environmental, Social, Governance) is of crucial importance here. What does this mean for you?

1. Environmental aspects (Environmental)

The focus is on reducing the CO2 footprint of real estate. This includes measures such as

  • the insulation of facades, roofs and cellars;
  • the replacement of old windows and doors;
  • the use of renewable energies such as photovoltaic systems on roofs
  • the use of geothermal energy;
  • switching to climate-friendly heating systems such as heat pumps or pellet heating systems.

As a property owner, you should take advantage of the opportunities for sector coupling by using electricity from renewable sources for heating and hot water.

2. Social aspects (Social)

  • Affordable housing: An important social aspect is the creation of affordable housing. As a property owner, you should ensure that your investments in sustainability do not lead to disproportionate rent increases. Instead, you should find ways to distribute costs fairly and keep rents at an affordable level.
  • Occupant comfort and health: Social aspects relate to occupant comfort and health. These include good indoor air quality through adequate ventilation, soundproofing for a quiet living environment and barrier-free access for age-appropriate use. The creation of communal spaces and green areas also contributes to the quality of life and promotes social cohesion.

3. Corporate governance (Governance)

  • Transparency, compliance and risk management: these are important factors for responsible landlords. As a property owner, you should integrate ESG criteria and report on them regularly. This also involves complying with legal requirements and minimizing risks that may arise from climate change or regulatory changes.
  • Stakeholder involvement: Inform and integrate all relevant stakeholders such as tenants, investors and local authorities. By engaging in an open dialog and taking their interests into account, you can create acceptance for your sustainability measures and benefit from valuable impetus.

The roadmap to CO2 neutrality

  • Analysis and renovation roadmap: To achieve the climate targets, you need to act now. First, you should analyze the energy status of your property and draw up a renovation roadmap. The legal requirements such as the Building Energy Act (GEG) must be observed. Energy performance certificates can provide valuable information on sensible refurbishment measures. It is also advisable to involve ESG managers, specialist planners and architects in order to develop holistic concepts.
  • Funding programs and financing: Funding programs such as the Federal Funding for Efficient Buildings (BEG) can support investments in refurbishment measures. As a property owner, you should find out about funding opportunities at an early stage and include them in your financial planning. Banks are increasingly offering “green loans” with attractive conditions for sustainable properties. In the long term, these investments pay off not only through energy cost savings, but also through greater value retention and rentability of the property. Independent consultants can help you identify and apply for the right funding.

Conclusion

If you invest in sustainable buildings now, you can benefit from the opportunities offered by the transition to climate neutrality. You not only contribute to environmental protection, but also ensure the long-term value retention and return on investment of your real estate.

You can also benefit from competitive advantages, as the demand for energy-efficient and healthy properties is constantly increasing. Tenants and buyers are increasingly attaching importance to sustainability and are prepared to pay a premium for it.

Overall, the transformation to climate neutrality offers great potential for you as a property owner if you act early and make your properties fit for the future. To implement the future sustainable management of your real estate assets, it will be important to appoint an appropriate consultant.

Do you have questions on this topic? Our expert in the field of sustainable, ESG-compliant real estate management will be happy to support you!

Our specialist real estate team, consisting of tax advisors, lawyers, financial experts and accountants, offers you a comprehensive package of advice from a single source.

We will work with you to develop the optimum solution for you!

Your ACCONSIS contact person

Klaus Nützl

Dipl.-Bankbetriebswirt (BA)
Klaus Nützl
Leitung Immobilien- und Finanzberatung

Service-Phone
+ 49 89 547143
or per E-Mail
k.nuetzl@acconsis.de