The penetration of sustainable buildings into the market is a trend of great interest. Some regions see imbalances between the demand for sustainable space and the supply from the real estate market. However, some other markets balance supply and demand well. Especially in Europe, the supply of sustainable property investments is lagging behind demand and needs further attention.
Nevertheless, real estate professionals in Europe are slowly becoming aware of the possibilities of this trend. A major contribution to this development is the growing number of certificated buildings across Europe, raising the visibility of sustainability
Sustainable Property Investments 2
issues. Many discussions have taken place on the sense and nonsense of sustainability certificates. In spite of this, the number of certified buildings continues to increase and certification systems are continually improved. The Deutsche Bank Towers, for example, are both accredited with two certificates: the LEED and the DGNB certificate.
An increasing number of owners and developers choose certificates as an assessment method or benchmark for their building. Sustainability certificates are a testimony to improved building technologies, which are usually difficult to observe. This enhances the transparency of a building’s sustainable features and may therefore lead to increased investments. However, the number of certifications has been slow to pick up in Europe.
In response to this situation this work aims to give a detailed analysis of the characteristics of sustainable property investments. Because of the interconnectedness of socially responsible investments and sustainable property investments, this work outlines both, in order to keep in focus the various actors, historical developments, and strategies.
Moreover, this work is an exploration of possible drivers for and impediments to the diffusion of sustainable buildings. This work aims to answer the questions of what forces drive the supply and demand of sustainable property investments and to what extent. These questions are analyzed with a particularly European focus, as the current state and development in Europe differs from that of other regions.
Table of Contents
1 Introduction
1.1 Problem Definition and Objectives
1.2 Course of the Investigation
2 Fundamentals and Definitions
2.1 Megatrends and Sustainability
2.2 Sustainability and the Real Estate Industry
2.3 Green Buildings
2.3.1 Economic Dimension of Green Buildings
2.3.2 Ecological Dimension of Green Buildings
2.3.3 Social Dimension of Green Buildings
2.4 Corporate Sustainability
3 Sustainable Property Investment Movement
3.1 Socially Responsible Investment
3.1.1 Actors and Strategies
3.1.2 Development
3.1.3 Performance
3.2 Socially Responsible Property Investment
3.2.1 Development
3.2.2 Actors and Strategies
3.3 Factors of Movement
3.3.1 Regulations and Legal Framework
3.3.2 Assessment Methods and Certificates
3.3.3 Key Actors
3.3.4 Status Quo
3.4 Drivers of Demand and Supply
4 Penetration of SRPI in European Markets
4.1 Conceptual Framework
4.2 Data
4.3 Hypotheses
4.4 Methodology
4.5 Results
4.6 Summarizing and Interpreting Empirical Results
4.7 Implications and Limitations of Analysis
5 Conclusion
6 Reference List
Objectives and Core Topics
This thesis examines the characteristics and market penetration of Sustainable Property Investments (SRPI) within Europe. The core research question addresses which specific socioeconomic, economic, and institutional forces drive the supply and demand for sustainable property investments, and to what extent these factors influence market development.
- Analysis of the relationship between corporate sustainability and property investment strategies.
- Evaluation of the role of sustainability certificates (LEED, BREEAM, DGNB, HQE) in the real estate market.
- Empirical analysis of drivers for SRPI using regression models across 22 European countries.
- Examination of the interplay between economic indicators (GDP, capital markets) and sustainable building diffusion.
- Assessment of barriers to the mainstreaming of responsible property investments.
Excerpt from the Book
1 Introduction
On February 24, 2011, the re-opening ceremony of the renovated Deutsche Bank Towers marked the endpoint of an approximately €200 million renovation. Originally completed in 1985 and since then headquarters of the Deutsche Bank, the two 155-meter-high towers underwent a three-year renovation period with a “green building” approach, resulting in a 50 percent reduction in primary energy use and emissions production (Hagge, 2009, p. 1; Hintermeier, 2011).
“Going green” has been a popular trend in the real estate industry in recent years and the renovation of the Deutsche Bank Towers is only one among many. It is only one part of a much greater movement toward social responsibility and sustainable development. Both concepts have been touted on the pages of all mainstream business magazines. Moreover, they have been successfully integrated into corporate strategies and are now considered an essential value driver.
The real estate industry is increasingly being measured by the same yardstick, as it is at the forefront of the sustainability movement. It is one of the largest producers of harmful emissions and a main consumer of resources. This is forcing real estate firms to allocate resources to the preservation of the balance between environmental, social, and economical objectives, which may affect internal and external stakeholder groups.
Summary of Chapters
1 Introduction: Introduces the topic of sustainable property investments, defines the problem of market penetration in Europe, and outlines the scope of the study.
2 Fundamentals and Definitions: Establishes the theoretical framework by discussing megatrends, the role of the real estate industry in sustainability, and defining key terms like Green Buildings and Corporate Sustainability.
3 Sustainable Property Investment Movement: Analyzes the evolution of Socially Responsible Investment (SRI) and its application to the real estate sector, including market drivers, key actors, and assessment methods.
4 Penetration of SRPI in European Markets: Presents the conceptual framework and methodology for the empirical analysis, tests 17 hypotheses regarding SRPI diffusion, and discusses the implications and limitations of the findings.
5 Conclusion: Summarizes the study’s findings, confirms the gap between sustainability awareness and actual market action, and provides recommendations for future capital allocation into SRPI.
Keywords
Sustainable Property Investments, SRPI, Socially Responsible Investment, SRI, Green Buildings, Real Estate Industry, Sustainability Certificates, LEED, BREEAM, DGNB, Corporate Sustainability, Market Drivers, Economic Performance, Environmental Impact.
Frequently Asked Questions
What is the primary focus of this thesis?
The work focuses on the characteristics of sustainable property investments and evaluates which macroeconomic and institutional forces drive their penetration into European real estate markets.
Which investment movement does this work explore?
It explores the Socially Responsible Property Investment (SRPI) movement, tracing its development from general Socially Responsible Investment (SRI) practices.
What is the central research question?
The study seeks to answer what specific forces drive the supply and demand of sustainable property investments in Europe and to what extent they influence the market.
Which scientific methodology is employed?
The thesis utilizes descriptive statistics and linear regression models, using data from 22 European countries and SPSS software for empirical testing.
What topics are covered in the main section?
The main part covers the theoretical definitions, the history and current status of SRPI, the analysis of influential drivers (demographics, economy, environment, legal frameworks), and the empirical testing of formulated hypotheses.
Which keywords define this work?
Key terms include Sustainable Property Investments (SRPI), SRI, Green Buildings, Corporate Sustainability, and various certification schemes like LEED and BREEAM.
How do certificates impact the SRPI market?
Certificates serve as essential tools to enhance transparency and provide measurable data for building performance, acting as a precondition for the realization of SRPI.
Does the study find a relationship between GDP and certified buildings?
Yes, the empirical analysis confirms that a country's economic size, represented by GDP and net national income, has a significant positive influence on the number of certified projects.
- Arbeit zitieren
- B.Sc. Michail Farmakis (Autor:in), 2012, Characteristics of the Investment Market for Sustainable Property Investments, München, GRIN Verlag, https://www.hausarbeiten.de/document/200493
