Newsec Property Outlook - Autumn 2022

Key insights

• ESG is at the top of the agenda. The transaction volume for environmentally certified buildings has risen sharply and today accounts for more than 10% of the total transaction volume.
• Real estate is far from ESG maturity. The total number of certified buildings amount to a mere 0.38% of the total stock, where commercial buildings (hotels, restaurants, office, & retail) stand out with 1.90% of the stock being environmentally certified. This phenomena has likely arisen due to pressures and requests existing throughout the value chain, starting with the construction companies and ending with the tenants.
• Unexpectedly, the field of social initiatives remains relatively unexplored. Measured through bond issuance, the Nordics are one of the most active in Europe in terms of green bonds, but one of the least active within social bonds issuance.
• Social initiatives are required - can real estate companies make a difference? When looking at segregation statistics, the Nordics and especially Sweden stand out internationally – highlighting the need for these initiatives.
• Looking forward, the rise of digitalization within the real estate market will accelerate and will make possible for companies to reach goals in terms of ESG. Regulations will increase and ESG awareness, if it has not already, will become the new normal.