As usual at the beginning of year industry leading real estate agency CBRE outlines the main trends and forecasts for 2022 in their most recent publication. What is not so usual, in fact it is the first time that their annual research report puts ESG on the top of the main factors affecting the market in Hungary. As they establish sustainability/ESG becomes focus for investors and occupiers, as well as for the general public. This leads to ESG assessments becoming a 'must have' for every due diligence, investment and project development decisions.
Concern for climate change and the associated public and regulatory pressure is the main driver behind these trends. These clearly have already significantly influenced international financial markets and the trends are now rapidly emerging in Central Eastern Europe, as well.
Brutally rising energy prices certainly add to the motivation to look at energy performance as a key part of sustainability performance. This has always been important for new and existing tenants of any commercial real estate, however, now it will be one of the most important market differentiator for property owners and developers, as well.
The positive outlook of the report also suggests greater competition in the office and industrial sectors. Staying ahead of the market will consequently require much more focus on ESG performance and quality - so the need for real and meaningful ESG investments and upgrades. All this underlines the importance of reliable and high quality professional ESG assessments, trustworthy green building certifications and effective but honest communications. And all of that now and not later if you want to beat the competition.
