Impact of ESG Performance on Real Estate Valuations: A to-be-established relationship?

Abstract

As sustainability becomes a crucial factor in the real estate industry, several stakeholders increasingly emphasize ESG criteria. However, the way these elements are included in property values varies greatly, and there is a clear discrepancy in accepted standards. Commissioned by a company, this thesis addresses the need for a framework, including ESG measures in real estate valuations, to fairly reflect market reality and investor needs.