Why is ESG so important for Real Estate Development?

Why is ESG so relevant for the Real Estate Industry?

🤔 Why will the real estate industry soon be unable to do anything without ESG? The keyword is financing...  💸

Since the EU taxonomy and the entry into force of the disclosure obligation, real estate developers are suddenly faced with an unusual challenge: the correct implementation of the ESG requirements. But ESG criteria are no longer just a nice to have but are becoming a decisive investment and value criterion.

Why? Since the EU Taxonomy, lenders have been obliged to indicate how sustainable their financial flows are – and therefore require proof of a property's ESG compliance. In other words, very soon only ESG compliant real estate projects will be financed in Europe. Optimizing the ESG performance of a project is therefore now an absolute necessity for real estate developers, because the ESG assessment will have a direct impact on financing, project success and even the asset value of a property.

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