Sustainable Real Estate Investment: A Guide for Beginners

Sustainable real estate is attracting more and more attention from investors because it reduces the operational risks of the portfolio. The growing need for structures that are resource efficient, managed in a way that does not impact the environment, and enable people to work and live healthily has driven this movement. In this blog, we will define what is Sustainable real estate investment and discuss the benefits of investing in sustainable properties.

What Is Sustainable Real Estate Investment?

We can define sustainable real estate investment as the investment in properties that have little negative effects on the environment and improve the occupants' comfort and health. This covers the preservation of strict environmental regulations, the effective use of resources, and conformity to socially accepted behaviors.

Sustainable investment is about the responsibility and potential the real estate industry holds to reach climate and environmental sustainability targets. An unparalleled degree of expansion and activity is witnessed in the real estate sector in a globe that is progressively urbanizing. That’s why achieving a decrease in greenhouse emissions in the context of real estate development and operation may and must be a major responsibility for investors, occupiers, cities, and governments.

Related: What Is Investment Real Estate in Turkiye?

Why Is Sustainable Real Estate Investment Important?

Integrating sustainability and climate into important choices is a duty for industry practitioners at all business stages. However, what many people are still unaware of is that, particularly in the medium and long run, directing market decisions towards climate-friendly, sustainable results can benefit investors and the real estate sector financially and economically.

Sustainable property investments have evolved over the past ten years from a specialist concern to a mainstream offering. A sizable portion of international development projects are composed of green buildings, and this percentage is predicted to rise.

The Benefits of Investing in Sustainable Real Estate

Lower Operational Costs

Sustainable buildings often have lower operating costs and a longer lifespan than non-sustainable structures. For example, energy-efficient technology, such as solar panels, and LED lighting are used in sustainable buildings. As a result, these buildings become less reliant on conventional energy sources. Water and maintenance expenses can also be decreased by investing in sustainable materials and water-saving technologies. This indicates that long-term financial gains, such as decreased utility and maintenance costs, may result from investing in sustainable buildings.

Related: Foreign Investment In Turkey: The Ultimate Guide For Investor.

Improved Resale Value

As the demand for environmentally conscious and healthy living continues to grow, the value of sustainable real estate is on the upswing. This trend offers attractive financial benefits and meets the growing need for clean and sustainable properties that promote well-being. By investing in green buildings, property owners can boost their asset's worth and appeal to potential tenants, leading to lower vacancy rates, longer leases, and higher occupancy levels. In short, embracing sustainability in real estate can lead to significant returns on investment while contributing to a greener future.

Related: What Are the Benefits of Real Estate Development?

Enhanced Reputation

Building a strong business image and drawing in clients and investors now heavily depends on sustainability. Purchasing sustainable real estate demonstrates your concern for society and the environment and your desire to contribute. Your company's reputation will improve as a result, and you will have more loyal customers and favorable word-of-mouth promotion.

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Lower Carbon Footprint

Governments throughout the world have put laws and regulations into place to increase awareness of energy saving and sustainability. Consider the Corporate Sustainability Reporting Directive, which will be implemented starting in 2024. You may reduce potential risks to your reputation and adhere to applicable requirements by making investments in sustainable real estate. Furthermore, making sustainable investments makes your real estate portfolio less susceptible to shifts in the market and in-laws and regulations.

Related: Best Countries To Buy Real Estate For Investment.

Healthier Communities

Positive effects on the neighborhood can also result from Sustainable Real Estate Development. Sustainable buildings promote green spaces which foster a feeling of community and encourage social interactivity. green spaces also enhance the air quality indoors and outdoors. Therefore it contributes to improving the health and well-being of its residents.

What Are the Types of Sustainable Real Estate Investment?

1. Green Residential Property: It gives priority to renewable energy sources, environmentally acceptable construction materials, and energy efficiency. By lowering energy use and carbon emissions, they make a major positive impact on the environment.
2. Green Commercial Property: It employs sustainable practices in large-scale structures such as hotels, retail malls, offices, and more. They incorporate features like efficient water and energy systems.
3. Sustainable Industrial Property: It exploits green roofs, on-site renewable energy generation, waste recycling programs, and high-performance building envelopes to minimize environmental harm.
4. Eco-friendly Retail Property: Some of the features of green retail spaces include LED lighting and efficient HVAC systems. These properties offer cost savings from reduced operating expenses and appeal to environmentally conscious consumers.
5. Zero Energy Building: It represents the pinnacle of sustainable real estate. These buildings produce enough renewable energy on-site to meet their annual energy consumption needs.

Invest in Green Projects with Imtilak

Sustainable real estate is about creating and managing properties that are resource-efficient, environmentally friendly, and socially responsible while also delivering economic advantages. Imtilak, a leading real estate company in Istanbul, is proud to adopt sustainable standards and practices that contribute significantly to climate mitigation efforts. Our company works with developers who utilize modern technologies in buildings and use renewable energy systems to build properties. We are pleased to offer our clients the best properties in Turkiye. If you want to find a suitable property at a competitive price, feel free to contact us.