4 in 10 APAC property investors to invest only in green buildings by 2028

APAC: Four in 10 property investors in Asia Pacific plan to invest only in buildings with energy-efficient features and renewable energy access by 2028, suggesting sustainability is becoming a deal breaker in real estate investment, EdgeProp Singapore reported, citing research by JLL.

Over the past 12 months, JLL’s survey showed that 63% of investors said sustainability affected their bids. Four in 10 increased offers for green properties, while three in 10 lowered or withdrew bids for non-compliant assets.

According to Kamya Miglani, JLL’s APAC head of research for work dynamics, a key concern among property investors is “sustainability obsolescence,” with 44% worried about buildings losing value due to non-compliance or failure to meet tenant demands.

In Singapore, the upcoming Mandatory Energy Improvement Regime (MEI) will require owners of energy-intensive buildings to conduct audits and cut energy use. The scheme is set to begin this quarter as part of the country’s net-zero goals.

Ms Miglani said investors and owners need a holistic, data-driven strategy that balances upgrades with tenant needs, adding that those who “get this right” will position their assets to outperform the market.

JLL said building upgrades can deliver strong returns, from over S$40,000 in annual savings for light-touch retro-commissioning to as much as S$500,000 a year for comprehensive retrofits.

Ms Miglani added that those who future-proof their portfolios today will capture a distinct competitive advantage and secure long-term value. /TISG

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