Sustainable residential real estate: What are the challenges?

Our Head of Business Development Jochen Dorner gives us an insight into sustainable residential real estate:

 

In fact, the existing buildings pose the greater challenge compared to new buildings, as these usually contain state-of-the-art technology that at least goes in the direction of CO2 neutrality or ideally already makes this possible. Modern building technologies and the use of renewable energies make new buildings significantly more efficient than existing buildings. In contrast, existing buildings contain outdated technology that must first be upgraded or replaced in order to meet the goal of CO2 neutrality. This is difficult, high investments are necessary here, which are usually transferred by investors to the tenants. A solution is therefore needed, without increasing rents and providing affordable housing. Because rental costs are already at the limit of what is possible today and cannot continue to rise to this extent. Solutions must therefore be found and incentives created, so the costs of investments in modernization are not fully transferred to the tenant.