PwC: Property sector says green retro fitting is a ‘best bet’

By Rob Starr, Content Manager, Big4.com

Emerging Trends in Real Estate® Europe 2013, published jointly by the Urban Land Institute and PwC show lenders increasingly see green buildings as a way of reducing refinancing risk.

In the UK, Paul Davies, partner, PwC, a specialist in the Green Deal, said the launch of the new government scheme could accelerate retro fit interest, transforming the profile of the property sector’s legacy building stock.

“There’s no doubt that environmentally sound properties will attract the best tenants and score plus points with lenders and investors. The Green Deal scheme is a great opportunity for businesses to make the investment cost – neutral, with increased energy efficiency being matched by a reduction in energy needs.”

Malcolm Preston, global lead, sustainability & climate change, PwC said

“The property sector’s view of sustainability is maturing. The next stage of the debate is a conversation not just about the environmental performance of the building, but the role the buildings play in the economic growth and social well-being of the communities around it. It’s sustainability in its broadest sense.”

The findings, published in Emerging Trends in Real Estate® Europe 2013, published jointly by the Urban Land Institute and PwC show lenders increasingly see green buildings as a way of reducing refinancing risk. Respondents reported that sustainability credentials in real estate help maximize finance, mitigate obsolescence and underpin security of income.

Interviewees, including Real Estate Investment Trusts, residential developers, banks, and investors, say environmental concerns are now intrinsic to their plans. For investors in particular, the green agenda is now tied to refinancing risks, meaning sustainability continues to rise up their agenda.