Four Ten Apac Real Estate Investors Now Willing Pay Premium Sustainable Assets Jll Survey

for building The Wisteria JLL: Sustainability Features a Priority for Real Estate Investors in Asia Pacific

According to a report by JLL, sustainability features are now a key consideration for real estate investors in the Asia Pacific (Apac) region. The firm’s research found that by 2028, four out of ten investors plan to only invest in buildings with energy-efficient features and access to renewable energy.

This shift represents a significant change from previous years, as investors are now actively prioritizing sustainability instead of just showing an intention to do so. JLL notes that investors are now paying more attention to the measurable performance of buildings and factoring it into their evaluation and pricing of real estate assets.

The survey conducted by JLL revealed that 63% of investors have been impacted by sustainability considerations in their bid offers over the past 12 months. In fact, 40% of investors have increased their offers for sustainable properties while 30% have decreased their bids or withdrawn from deals involving non-compliant assets.

Kamya Miglani, JLL’s Apac head of research for work dynamics, says that sustainability obsolescence is now a major concern for investors. Nearly half of the survey respondents worry about assets losing value due to non-compliance or the inability to meet tenants’ sustainability demands. This is largely due to building regulations and international reporting standards that are driving investors to apply a “brown discount” to non-compliant properties.

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According to Miglani, this regulatory influence is set to intensify as governments in the Apac region strengthen building codes and mandate climate disclosures. In Singapore, there are already regulations in place, such as the upcoming Mandatory Energy Improvement Regime (MEI). The MEI, set to commence this quarter, will require owners of energy-intensive buildings to carry out an energy audit and implement measures to reduce energy use.

Given these developments, Miglani stresses the need for a holistic, data-driven strategy that takes into account both upgrades and the operational realities and tenant experience of the building. She adds that those who get this right will not only comply with future rules but also position their assets to outperform the market.

JLL estimates that these upgrades can offer significant returns, with annual savings of over $40,000 for a light-touch retro-commissioning of a building’s systems. In the case of comprehensive retrofits that involve upgrades to chillers and building management systems, annual energy savings can reach up to $500,000 for a single commercial building.

Miglani concludes that as corporates and investors increasingly prioritize climate-resilient assets, those who future-proof their portfolios today will gain a competitive advantage and secure long-term value.