The impact of listed real estate

The European Public Real Estate Association has set out to explain how the sector can play its part in the green transition, writes Jana Bour.

A clear declining trend in public investment in housing is hard to deny. However, investors’ appetite to enter the space may be on the rise. There are signs that the increasing interest in sustainable investments is translating into increasing interest in social investments. Such movement needs to be encouraged by policymakers so that capital can be directed to where it is needed most.

However, it can be a challenge to understand how the financial sector and listed real estate operate, and what their purpose and impact is. How do we create the right policy and regulatory incentives without knowing what their full potential is? EPRA has produced a set of materials to explain listed real estate’s role within capital markets and why it is a strong partner in scaling up investments with impact. The infographic opposite is part of this initiative.

Why does it matter? And how should the information be transformed into policy?

The overwhelming need to decarbonise residential buildings in Europe needs to be addressed, particularly with low-income earners and young families in mind. It is important not only to heed regulatory requirements, but also to provide the right environment which motivates investors to invest in the transition of residential buildings.

For example, the EU Sustainable Finance Framework should allow listed real estate to acquire non-efficient buildings with the objective of transforming them (i.e. energy renovation), while considering the future income generated from such economic activity (i.e. rent) as sustainable for the purpose of EU Taxonomy reporting.

Jana Bour is ESG policy and advocacy manager at EPRA

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