Global Interest in Green Buildings Declines as ROI Concerns Grow

Global interest in sustainable real estate has declined over the past year, according to new findings from the Royal Institution of Chartered Surveyors. Its 2025 Sustainability Report shows that occupier demand for green buildings has fallen from 41 percent to 30 percent worldwide, despite continued pressure to decarbonise the built environment.

The sharpest decline has occurred in the Americas, where the Sustainable Building Index dropped dramatically compared to previous years. Europe, historically a strong market for green real estate, has also seen demand weaken. Meanwhile, the Middle East and Africa stands out as a growth region, posting higher index levels than the global average.

High upfront costs and uncertain financial returns appear to be the main barriers. Between 35 percent and 46 percent of respondents cited unclear return on investment or insufficient operational performance data as key reasons for hesitation. While investors often prioritise green certifications, occupants tend to focus on real energy efficiency and lower operating costs.

Donatas Karčiauskas, CEO of Exergio, argues that the gap between certification and actual building performance is undermining confidence. According to him, investors are not opposed to sustainability but require clear evidence that green investments deliver measurable savings.

The report also highlights weaknesses in industry data practices. Nearly half of construction professionals admit they do not measure carbon emissions on their projects, and only a small share use carbon data to guide material choices. A lack of sustainability expertise further compounds the issue.

Experts increasingly point to artificial intelligence as a potential solution. By automating data collection, analysing building performance and optimising systems in real time, AI tools could help demonstrate tangible returns and align investor expectations with occupant needs.

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Source: Energy Digital