Growing demand for sustainable buildings and housing
Awareness of sustainability has grown by leaps and bounds in recent years, driving increased demand for sustainable and energy-efficient buildings. As we will see, this trend is not only a response to environmental concerns but is also backed by a range of economic and fiscal benefits, as well as advances in sustainable construction technologies.
What is a sustainable building?
A sustainable building is one that is designed and constructed to minimize its environmental impact throughout its entire life cycle, from the selection of materials to its use and eventual demolition. Sustainability in construction involves the use of renewable resources, the optimization of energy consumption, efficient water management, and waste reduction.
Eco-friendly buildings often have sustainable building certifications, which ensure that specific sustainability standards are met. These certifications, such as Leed (Leadership in Energy and Environmental Design), Breeam (Building Research Establishment Environmental Assessment Method), or in Spain, Verde (Valoración de Eficiencia de Referencia de Edificios), guarantee that the building meets criteria for energy efficiency, indoor environmental quality, and responsible resource use.
The growing concern about climate change and resource scarcity has led to stricter regulations in Europe. The new EU Directive 2024/1275 on the energy performance of buildings (EPBD) sets deadlines for buildings that do not meet certain energy efficiency standards to be retrofitted, increasing the need to construct and rehabilitate sustainable buildings in Spain and throughout the European Union.
The new European directive, in force since May 28, 2024, helps speed up the renovation of the EU’s building stock, particularly the least efficient ones in each country. It also promotes better air quality, the digitization of building energy systems, and the deployment of sustainable mobility infrastructures. Essentially, the regulation aims to reduce greenhouse gas (GHG) emissions from the construction sector by at least 60% by 2030 compared to 2015 levels and achieve a decarbonized, zero-emissions building stock by 2050.
Tax benefits for sustainable buildings
In Spain, the good news is that 78% of homebuyers would be willing to pay more for a more sustainable home. According to the I Observatorio sobre Vivienda y Sostenibilidad de UCI, the extra effort would amount to an additional 7.25%, or a cost increase of €12,682 on an average 100-square-meter home, based on the appraised value of free-market housing in the fourth quarter of 2022, as published by the Ministry of Transport, Mobility, and Urban Agenda (Mitma).
Investment in sustainable construction not only brings environmental benefits but also offers economic incentives. In Spain, there are various tax deductions and subsidies for those who choose to build or renovate sustainable buildings.
One of the main advantages is the ability to access income tax deductions of up to 60% of the costs of energy rehabilitation. This incentive is especially appealing for homeowners who want to make improvements, such as installing solar panels or thermal insulation systems.
Additionally, the Next Generation EU Funds have opened the door to specific financing for energy rehabilitation, providing resources for projects aimed at improving the efficiency of existing buildings. However, despite the availability of these aids, a significant obstacle is the lack of awareness. According to UCI’s observatory, 90.7% of homeowners are unaware of these tax breaks.
Technologies used in the construction of sustainable buildings
Technological advancements have played a crucial role in creating sustainable buildings. Innovations in materials and construction techniques have enabled architects and developers to create spaces that are not only efficient but also offer a healthy and comfortable living environment. Some of the most notable technologies include:
1. Solar panels: Renewable energy generation is a cornerstone of sustainable construction. Solar panels allow buildings to generate their own energy, reducing their dependence on non-renewable sources and decreasing their carbon footprint.
2. Advanced insulation systems: Exterior thermal insulation systems (ETICS) improve energy efficiency by maintaining a constant indoor temperature and reducing heating and cooling consumption.
3. Smart home technology: Automating buildings with smart home systems allows for more efficient energy control. These systems can regulate lighting, climate control, and other resources, optimizing usage and improving efficiency.
4. Recycled and low-impact materials: The choice of construction materials is key to sustainability. Using recycled materials and those with a lower environmental impact contributes to waste reduction and lower emissions during the construction process.
5. Water management technologies: Systems that collect and reuse rainwater, as well as the installation of water-saving devices, are essential for the sustainability of buildings.
Sustainability and Urbanitae
At Urbanitae, we believe that new construction can decisively drive the sustainable transformation of the housing stock. New developments often significantly improve the environmental performance of older buildings. In more and more cases, sustainability also plays a leading role in the design and construction of real estate projects.
This is the case with our Marjolin project in Paris. The office building at the heart of the project was fully renovated in 2014 and is certified with the BBC Effinergie rénovation label for energy efficiency, ensuring not only energy savings but also a competitive advantage for its future sale. Another standout project is Allonbay Village, the first project in Spain to be certified under the Breeam Urbanism scheme for its sustainability.
In summary, the growing demand for sustainable and energy-efficient buildings reflects a transformation in how construction and real estate investment are perceived. As regulations become stricter and tax benefits expand, sustainable construction presents itself as a viable and attractive solution for both homeowners and investors.
The adoption of advanced technologies and increased awareness of sustainability are factors that will contribute to a greener and more efficient future in the real estate sector. With the growing pressure to decarbonize and the need to adapt to new regulations, eco-friendly buildings are set to become the norm rather than the exception in the coming years, positioning themselves as a smart and responsible investment in today’s market.