Environment Outlook 2020

Andrew Phipps • 03/12/2020

Currently, buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU, so it is critical that the real estate sector plays its part in helping achieve climate goals.

For 2020, we have identified three key environmental trends for real estate:

New legislation

Environmental legislation is putting mounting pressure on the real estate sector across the continent. A survey of European countries identified more than 1,500 national measures aimed at mitigating climate change in ways connected to real estate – and we can expect this to increase over the next decade.

Investors are cautious

Investors are still waiting for occupiers to confirm a strong demand for ‘green’ properties. Investment managers are increasingly aware that long-term profitability will suffer if they are not able to include climate risk in their pricing, but they do not necessarily understand climate risk well enough to accurately price in climate-oriented features. As with electric cars or organic vegetables, people want these and know they should have them – but they don’t necessarily want to pay for them.

Data is helping assess climate risk

Various technologies are emerging to help investors price properties with climate features more accurately. These tools analyse the vulnerability of assets to climate risks, as well as the impact of such risks on market value; data is then used to guide the programming, planning and costing of necessary mitigation work, alongside an estimate of the consequent financial impact.

 

In our Environment Outlook report, we further examine how the industry is tackling environmental issues – and what impact these are having on valuation.

Download now to find out how developers and investors can fully capitalise on 2020’s changing landscape.

Environment Outlook report

Find out how developers and investors can fully capitalise on 2020’s changing landscape.

Explore all of the Outlook 2020 articles:

demo
Insights • Forecast / Outlook

Demographics Outlook 2020

Over the last 40 years, Europe’s population aged 65+ has almost doubled in size. Meanwhile, 55% of people now live in cities, and single-person households are increasingly standard. In our Demographic Outlook report, we examine how real estate is reacting to these trends – and where the opportunities lie in 2020.

Andrew Phipps • 03/12/2019
political
Insights • Forecast / Outlook

Political and Economic Outlook 2020

Change is the “new normal” – and in 2020, the real estate sector is likely to face the continuing effects of a global economic slowdown, trade wars, and the further polarisation of politics and an ongoing talent shortage.

Andrew Phipps • 03/12/2019
costs
Insights • Forecast / Outlook

Construction Cost Outlook 2020

The construction industry is not typically thought of as a driver of change – and its buildings are still assembled in largely the same way they were 50 years ago. Now we're seeing tech solutions to address rising construction costs.

Andrew Phipps • 03/12/2019
environment
Insights • Sustainability

Environment Outlook 2020

Currently, buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU, so it is critical that the real estate sector plays its part in helping achieve climate goals.

Andrew Phipps • 03/12/2020
investment
Insights • Forecast / Outlook

Investment Outlook 2020

Who will be the risk-takers?
Although weak economic growth and historically low yields are likely to continue in 2020, there are still opportunities to seek higher returns – and an increasing number of investors are willing to try. However, any high-yield property asset will come with risks that need to be understood, so investment intelligence is more important than ever. In our new Investment Outlook Report, we take a look at the key trends in store for 2020, including:
Andrew Phipps • 03/12/2019
logistics
Insights • Forecast / Outlook

Logistics Outlook 2020

2020’s headline news is that logistics real estate will continue to be driven by key trends in e-commerce, technology, and labour availability.

Andrew Phipps
tech
Insights • Technology

Technology Outlook 2020

The real estate industry is now witnessing some fundamental changes. After years of lagging behind the pace of technological change, property is beginning to catch up.

Andrew Phipps • 03/12/2019
cbd
Insights • Forecast / Outlook

Outlook 2020: Central Business Districts

Should we leave CBDs behind? The Central Business District used to be the beating heart of a city. In recent years, however, changes in behaviour, technology and economic life have led to a greater spread of activity.
Andrew Phipps • 03/12/2019
change
Insights • Forecast / Outlook

Outlook 2020 Social Change

In our Social Change Outlook report for 2020, we look at the most important factors driving change in the new decade – not just for society in general, but also for the future of real estate.

Andrew Phipps • 03/12/2019
retail
Insights • Forecast / Outlook

Retail Outlook 2020

New mindsets will drive change

Today’s retail sector is undergoing major disruption, fuelled by a set of powerful technological, social, demographic and economic forces.

Andrew Phipps • 03/12/2019
mixed
Insights • Forecast / Outlook

Mixed Use Outlook 2020

The concept of mixed use property development is undergoing a revolution. The new generation of developments will be altogether different: genuine multi-functional spaces that increase flexibility, create experiences, and provide maximum connectivity.

Andrew Phipps • 03/12/2019
eye in blue duotone
Insights • Forecast / Outlook

Outlook 2020

Addresses key challenges and opportunities that will define the future of European commercial real estate in 2020 and beyond.

Andrew Phipps • 03/12/2019