Conducted in autumn 2025, the RICS Sustainable Real Estate Survey Europe gathered 112 responses from valuers, developers, investors and other professionals across 30 countries. The findings confirm that ESG has moved from a peripheral concern to a core driver of real estate value, risk and decision-making across Europe.
“As climate-related risks become increasingly visible across European markets, valuation practice must evolve on the basis of robust, shared evidence. This survey provides practitioners with an opportunity to contribute real-world insights, supporting the consistent and credible integration of sustainability considerations into valuation decisions to build measurable standards and guide the sector’s future," says Jens Boehnlein MRICS, Global Head of Real Estate at Siemens Healthineers AG, Member of the RICS Europe World Regional Board, Chair of RICS in Germany.
Demand and pricing
Two-thirds of respondents reported a significant or modest rise in demand for green buildings — well above the approximately 40% recorded globally in the RICS Global Sustainability Report 2025. Pricing evidence supports this: 72% believe green buildings achieve higher rents, with most estimating a premium of up to 10%, and 63% report higher sales prices are achievable. A notable 37%, however, still see a brown discount rather than a green premium, reflecting a market in transition rather than one that has fully repriced.
“The Sustainable Real Estate Survey Europe 2025 highlights Italy’s strong leadership in the shift toward a more sustainable built environment. Italy shows a clear commitment to green, efficient and resilient assets. Yet, challenges such as upfront costs and fragmented standards remain. RICS will continue supporting the Italian market with guidance and tools that help translate sustainability into measurable, credible value and ensure our assets are truly future‑proof," adds Gloria Brocchi MRICS, Head of ESG at Generali Real Estate, Member of the RICS Europe World Regional Board, Chair of RICS in Italy.
What is driving decisions — and what is holding them back
Regulation is the leading ESG driver, cited by 66% of respondents, followed by client and stakeholder demand (60%) and rising reporting requirements (46%). Financial incentives rank much lower, suggesting adoption is driven more by risk mitigation and compliance than direct profit. The main barriers mirror this: 49% cite financial uncertainty and lack of ROI evidence as the primary obstacle, with high upfront costs close behind at 47%. Fragmented standards and insufficient government incentives compound the challenge. On construction, 76% flag high initial costs as the dominant hurdle, and 54.5% do not measure embodied carbon at all — a critical gap as EU requirements tighten under the EPBD from 2028.
“As sustainability considerations increasingly influence investment and valuation decisions, the need for reliable, comparable market insights has never been greater. This survey supports professionals across Europe by grounding sustainability ambitions in practical evidence, helping to strengthen confidence, consistency and transparency in how ESG factors are reflected in real estate value. Across European markets, and particularly in highly transparent markets like the Netherlands, sustainability is rapidly becoming integral to value, risk and long‑term performance. This survey provides an important evidence base to help professionals apply ESG principles consistently and credibly in valuation and investment decisions," comments Joël Scherrenberg MRICS, Deputy Chair of the RICS Europe World Regional Board.
Conclusion
The survey paints a picture of a sector in transition: demand is rising, premiums are emerging, and regulation is accelerating change. But financial uncertainty, high costs and fragmented standards are slowing the pace. Unlocking the full potential of Europe’s sustainable real estate transition will require clearer financial evidence, stronger policy support and greater cross-sector coordination — with professional standards and expertise at the centre.
“Sustainability has moved firmly from ambition to action across Europe. Members of RICS are leading this transition by applying robust standards, data and professional judgement, and RICS is committed to supporting them with the guidance and skills needed to deliver real, long‑term impact," concludes Anna Orcsik, Market Director - Europe (Interim) at RICS.
