DCarbon: ‘One-way’ development of real estate with sustainability specifications

And in the first half of 2022, the steady increase in property development with sustainability features continued. Despite the climate of generalized instability due to the ongoing war in Ukraine, as well as in the wake of the pandemic, the domestic real estate market continued to develop with sustainability criteria in mind when developing new properties or radical renovations. Therefore, to date more than 100 projects in Greece have now implemented the most popular global sustainability program LEED, the total surface of which amounts to 1.4 million square meters. These projects have mainly been developed by the most important institutional investors (Dimand, Prodea, Noval, OTE, etc.) and concern office spaces, while two points worthy of attention should be identified: the upward trend in the sector of the hotel infrastructures that are now moving towards sustainable standards, but also the decisive contribution of the Stavros Niarchos Foundation in the field of “green” real estate. The SNF, which after the Culture Center, is the largest LEED-certified property in Greece, is leading the way with the new national donation to the Greek government, which includes the creation of three new major hospitals in Thessaloniki, Komotini and Sparta with the highest standards of sustainability and resilience to climate change.

Capturing this trend proves that the strong demand for quality and durable spaces is an ongoing condition, which concerns all parties involved in the real estate sector, from developers, builders to tenants and portfolio holders. Of particular interest is now the integration of the assessment of sustainability and resilience indicators in the context of investment due diligence for the purchase and sale of large properties. Almost ten years after the completion of Dimand’s first LEED-certified property, the Karela Office Park, embracing sustainability in now-institutional terms is a key differentiator and driver for creating goodwill. On a macroscopic level, it is also one of the elements that contribute to the internationalization of the Greek market by strengthening the terms of transparency and comparability of the relevant transactions.

At a level of geographical distribution of sustainable real estate projects, Athens maintains the lead as expected, with interest focused on Marousi, Piraeus, Elliniko, but also the wider center of Athens including Syngrou Avenue. Thessaloniki follows and now has the first buildings developed with sustainability criteria, while other cities, such as Heraklion, due to the new Airport under development, appear on the map.

In the near future, the further expansion and qualitative maturation of the integration of sustainability in real estate development will be judged. The accumulated experience and knowledge leads the sector to a more holistic and macroscopic treatment, but also to the identification of new invitations. Such is, after all, the strengthening of health levels in buildings, but also the convergence with the goal of zero pollution by 2050. The cost of real estate insurance is going to be particularly affected, due to the claims of individuals and businesses from the increasingly intense environmental disasters or other unexpected situations, such as the pandemic. The effective implementation of ESG strategies at corporate or portfolio level is after all the key not only to the sustainable management and development of a portfolio, but also to new reliable financing opportunities in the context and implementation of the Green Deal.