HAMBURG, GERMANY-Property investors in Europe are increasingly investing in sustainable buildings, and these are likely to account for a much higher proportion of professional European investment portfolios in the medium term, says locally-based Union Investment Real Estate.

As well as developing new green buildings, refurbishing existing buildings with a strong focus on sustainability is an emerging trend. Its latest study showed that 64% of surveyed companies have embedded sustainability criteria into their real estate investment strategy.

Despite turbulence in property investment caused by the financial and economic crisis, interest in sustainable building remains high. Some 62% of investors plan to allocate significantly more to green buildings in future, and French investors in particular are extremely committed. Some 55% of all respondents intend to invest in developing new green buildings during the next 12 months, while 52% expect to update or refurbish existing holdings soon along sustainable lines. It is telling that some 50% of investors surveyed consider sustainable real estate investment to be part of corporate social responsibility. This view is especially pronounced among UK investors, at nearly 60%." Compared to the last survey, there is evidence that investors are now more aware of the economic opportunities associated with sustainable building," said Union Investment Chairman Reinhard Kutscher.