Key Takeaways
- • Demand for sustainable buildings fell from 41 percent to 30 percent globally, according to the RICS 2025 Sustainability Report released in November 2025.
- • Investors and developers mostly cite unclear returns as the reason for scaling back green renovations, with many projects stalling on high upfront costs and uncertain payback.
- • Roughly half of survey respondents do not measure embodied carbon at all, and only 16 percent say their assessments change design choices.
- • Just 17 percent of respondents believe the industry has enough sustainability knowledge.
Summary
Demand for sustainable real estate is cooling in most regions, and the sector needs stronger evidence that the cost of making properties greener is justified, according to an Institutional Real Estate, Inc. (IREI) article. The article draws on a report released in November 2025 by The Royal Institution of Chartered Surveyors (RICS), the RICS 2025 Sustainability Report.
The report shows global demand for sustainable buildings dropping from 41 percent to 30 percent. Investors and developers mostly attribute their decisions to scale back renovations to unclear returns. Many green projects are stalling because of high upfront costs and uncertain payback periods.
Measurement practices also remain a gap. Across regions, roughly half of respondents to the RICS survey said they do not measure embodied carbon at all, and only 16 percent said their assessments change design choices. Globally, a growing number of construction companies do not measure carbon emissions on their projects.
Confidence in the industry's expertise is also limited, with just 17 percent of respondents believing the industry has enough sustainability knowledge. Related IREI coverage notes that grants, tax credits and rebates can significantly reduce the cost of sustainable upgrades, and that reducing greenhouse gas emissions and operating expenses can help support property values and capture tax incentives.
The report shows global demand for sustainable buildings dropping from 41 percent to 30 percent. Investors and developers mostly attribute their decisions to scale back renovations to unclear returns. Many green projects are stalling because of high upfront costs and uncertain payback periods.
Measurement practices also remain a gap. Across regions, roughly half of respondents to the RICS survey said they do not measure embodied carbon at all, and only 16 percent said their assessments change design choices. Globally, a growing number of construction companies do not measure carbon emissions on their projects.
Confidence in the industry's expertise is also limited, with just 17 percent of respondents believing the industry has enough sustainability knowledge. Related IREI coverage notes that grants, tax credits and rebates can significantly reduce the cost of sustainable upgrades, and that reducing greenhouse gas emissions and operating expenses can help support property values and capture tax incentives.
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