Market Focus 2022

Investment market Green Buildings

Green Building Investmentmarkt

GREEN BUILDINGS ON RECORD COURSE

  • In 2021, the investment volume in certified green buildings in Germany reached an absolute record level of approximately €12.4 billion. The relative share of the total volume of single asset deals also broke all records in 2021 with 25.7%. Every fourth euro invested in commercial real estate in Germany last year thus flowed into sustainably certified buildings.
  • Sustainable, ESG-compliant buildings have gone from being a trend to a "must-have". The increased environmental awareness in society as a whole is certainly making a contribution here. However, the driver of the development is clearly the EU with the new taxonomy and disclosure regulation (Sustainable Finance Disclosure Regulation, SFDR). For the first time, legal criteria (taxonomy) and categories (SFDR) apply to sustainable investment products. With MIFID II, real estate funds that do not comply with Article 8 or 9 of the SFDR must be designated as unsustainable in investment advice. Accordingly, Article 8- or 9-compliant ESG funds are increasing significantly in Germany and Europe in terms of number and investment volume.
  • The number of certified buildings also continues to rise. Despite the new EU guidelines, however, uncertainties remain because the regulations are neither conclusively defined nor are additional ESG criteria currently binding. Furthermore, many transactions suffer from an insufficient ESG database. Certificates are a good tool to better meet investor requirements.

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