RICS warns of ‘green fatigue’ as global demand for sustainable buildings slows

There has been a slowdown in global demand growth for sustainable buildings, according to a new report from The Royal Institution of Chartered Surveyors. Image: Adobe Stock

The research finds that while investors continue to value green certifications and climate-resilient assets, high initial costs and uncertainty about returns remain the biggest deterrents to investment.

A lack of investor awareness, especially across Middle East and Africa (MEA) and Asia Pacific (APAC), also emerged as a significant barrier.

Demand is said to have weakened the most across the Americas, with Europe and APAC also seeing a softening of interest for ‘green’ buildings and projects. The only region to see growth is MEA.

According to the report, 46% of construction professionals are not measuring embodied carbon – a figure that has risen in the past year. Only 16% say carbon measurement meaningfully informs material choices in project design.

“Transformation across the built environment is necessary if we are to meet the challenge of climate change. This important RICS research shows progress, but also clear signs of fatigue and uncertainty,” said Nicholas Maclean, Acting RICS President.

The Institution’s Sustainability Report was based on more than 3,500 real estate and construction professionals across 36 countries.