Global appetite for green buildings softens amid cost and policy pressures

Demand for sustainable buildings has slowed worldwide, with the Americas seeing the sharpest decline, according to a Royal Institution of Chartered Surveyors survey of over 3,500 real estate and construction professionals across 36 countries. While sustainability remains on corporate agendas, adoption of green practices, particularly carbon measurement, is stagnating.

Almost half of construction professionals globally no longer track embodied carbon, up from 34% previously, and only 16% report that carbon data meaningfully informs material choices. With the built environment responsible for nearly 40% of global carbon emissions, experts warn that decarbonisation targets will be missed without mandatory whole-of-life carbon assessment and reporting.

High upfront costs, unclear returns, and weak occupier demand are cited as key barriers, particularly in Asia Pacific, while shifting political priorities in the US have further dampened investor confidence. Despite the slowdown, 40% of respondents still report rising demand for sustainable buildings, although significant growth is rare.

The survey also highlights a divergence between investors and occupiers: investors focus on certification and climate resilience, while occupiers prioritise energy efficiency, indoor environmental quality, and water conservation. Biodiversity and climate adaptation are gaining attention, particularly in climate-vulnerable regions, signalling a gradual broadening of sustainability agendas beyond energy efficiency alone.

The findings underscore the challenge of aligning financial and operational priorities in sustainable real estate and highlight the role of regulatory clarity, stakeholder engagement, and strategic investment in driving adoption.

Explore the full RICS report and see how shifting market dynamics are reshaping green building strategies globally.