As one of the largest industries in the world, real estate’s influence on the environment and society has always been substantial. Sustainability and social responsibility are now shaping the decisions and strategies of property developers around the world.

Leveraging sustainable practices in property development 

One of the key factors driving the demand for sustainable properties is the long-term value they offer, which extends beyond protecting the environment. Embracing sustainability can have numerous advantages for residents, investors and other stakeholders. Developing buildings that meet industry standards for sustainability can lower operational costs, as those properties are designed to consume resources more efficiently, from water and heating to electricity and more.

For residents, living in homes that have high sustainability ratings can result in more resilient communities by adopting clean energy and other sustainable practices, and they can even add to the natural beauty of a space by improving biodiversity.

Real estate developers’ multi-approach towards sustainability 

Real estate developers often embrace different motivations and approaches towards sustainability, which depend on their size, location, and speciality. Tackling climate change is among the most important motivations, and new measures are being implemented to reduce carbon emissions, such as incorporating low-carbon technologies and using renewable energy sources on construction sites. Preserving nature, in contrast, may require following different approaches, such as promoting biodiversity by delivering welcoming public spaces and achieving water neutrality at a project scale by retrofitting water-saving devices.

Resident-focused developers prioritise creating healthier communities, such as rebuilding unloved and underused spaces. Some property companies are also taking additional steps to reduce waste, such as implementing waste monitoring software and reusing construction materials, which can have a tremendous effect on the environment.

In recent years, the increasing focus on ESG (Environmental, Social, and Governance) has driven positive change. According to a JLL survey, 83% of senior executives in the real estate industry are now looking at ways to innovate and accelerate their sustainability strategies as they see it as paramount to the long-term success of their company.

The future of sustainable properties  

The increased interest in sustainable properties has been driven by the private and the public sectors. The private sector, comprising property developers, is always exploring new ways to be more sustainable and cut emissions, which can encourage other developers to follow the same path and help make an industry-wide shift. Many governments around the world are also supporting this transition, and regulatory standards are rising. 

With more companies embracing a more responsible approach in their operations, the process of measuring the sustainability of businesses has become more important. Having a more streamlined process and reporting on sustainability can provide more transparency to investors, buyers and other stakeholders. By forging clear and consistent policies for the environment and community, all stakeholders can cultivate a collective commitment to a more sustainable and accountable future.