Sustainable real estate funds for a greener future Do you want to invest your finances sustainably and support green projects? Then sustainable real estate funds are something for you. Green real estate as a sensible investment There are now many ways to invest your money in the long term and profitably. Nowadays, the issue of sustainability also plays a major role. The EU supports investments that contribute to the sustainability goals. Because this is also a way of promoting and supporting sustainable development. This is how options for investing money in sustainable investments are piling up. A common option is sustainable real estate funds. But what exactly characterizes these funds and what do interested parties have to consider when making their selection? We'll clarify that here. EXPORO (display)Sustainable real estate funds invest the money in sustainable buildings and generate profits, from which the investor then also benefits, from rental and interest income as well as from the increase in the value of the property. The value of sustainable real estate will increase in the future – more than the value of buildings without sustainability aspects. What is sustainable real estate? Whether it's a residential building, office building or industrial building – there are different types of real estate that can be invested in. And these can all be sustainable. But what does that mean when a building is sustainable? Sustainable real estate is defined in different ways, as there have not yet been any uniform measurement values for the sustainability of buildings. However, there are basic characteristics that characterize a sustainable building. Energy efficiency: Sustainable buildings are supplied with electricity and heat using renewable energies. In addition, the energy requirement should be reduced by the construction and the materials and the tenants should be informed about energy-saving behavior. Less emissions and resources: Sustainable buildings are built using environmentally friendly materials that do not contain any pollutants and are therefore intended to ensure the health and comfort of users. Reducing waste and improving recycling measures also play a role. In general, these measures reduce emissions and use of resources and space in sustainable buildings. Other criteria for the sustainability of buildings are, for example, the proximity of the building to local public transport, the preservation of culture and the provision of the best quality of living. In general, the construction and use of sustainable buildings should protect the environment and resources, and protect social and cultural values. Social facilities such as dormitories or day care centers can also be considered sustainable real estate. How do I know the property is sustainable? Since there are currently no generally applicable values and requirements for the sustainability of real estate, the buildings are evaluated using green building certificates and then awarded. A widespread and respected certification system in Germany is the DGNB. German Sustainable Building Council: The DGNB certification system looks at the entire life cycle of the building. The aspects of environmental friendliness, resource conservation, functionality and social and cultural integration are the focus. There are special criteria for the evaluation, according to which the building is checked and finally receives an award. Bronze, silver, gold or platinum can be achieved. What is special about the DGNB rating system is the inclusion of multiple facets of sustainability. Most other certificates mainly deal with ecological sustainability, i.e. only with the environmental aspects. Other common certificates for sustainable buildings are BREEAM, LEED or HQE. What else is there to consider? If you want to do something useful with your investment, investing in sustainable real estate is certainly a good choice. But before you start investing, you should find out which sustainability criteria the properties have and whether they meet your expectations. Because if you want to invest your money green, it should also be for a cause that you want to support and that you can rate as positive. Some real estate funds select sustainable real estate based on exclusion criteria, others focus on a specific topic such as renewable energies, and still others on a variety of sustainability topics. Here are two examples of providers of green real estate investments: Deka Immobilien focuses on reducing CO2 emissions, sustainable management and environmental friendliness of the buildings. The majority of the fund properties are certified according to sustainability criteria, including DGNB and LEED. The proportion of certified buildings at Deka is growing steadily. KCD-Catella Sustainability REAL ESTATE Germany is a real estate fund of Catella Real Estate AG. The buildings are checked according to economic, ecological and social sustainability aspects and evaluated by a sustainability committee. KCD also relies on investing in social facilities such as kindergartens and nursing homes.Why invest in green real estate? With an investment in sustainable real estate, you not only invest your money securely, you also contribute to more sustainability and thus to the fight against climate change. So far, the real estate sector has had quite an impact on the environment, and in a negative sense: real estate consumes around 30% of resources and energy and is responsible for 40% of CO2 emissions. This can be counteracted by supporting sustainable buildings. Another reason for the investment is that the value of sustainable real estate will increase – because such buildings will be used in the future to make cities and communities more sustainable. So if you don't know what to do with your savings: Think about which sustainability criteria are important to you and look around for the right fund providers. Then you can start into a green future with your green investment. You can find more information about the investment opportunities in our article Green construction projects: Sustainable real estate as a green investment.
