The momentum behind sustainable construction appears to be faltering, despite the urgent need to address the built environment’s substantial carbon footprint.
According to the Royal Institution of Chartered Surveyors (RICS), demand for green buildings has declined significantly across most global markets, raising questions about whether the industry can meet its climate commitments.
The private sector’s waning interest in sustainable real estate presents a troubling paradox.
While pressure mounts to decarbonise buildings, which account for nearly 40% of global carbon emissions, investment appetite has diminished markedly.
RICS’s 2025 Sustainability Report reveals that global demand for sustainable real estate has dropped from 41% to 30%, with the Americas experiencing the most dramatic decline, plummeting from nearly 50% in 2021 to just 11 in 2025.
High upfront costs and uncertain financial returns remain the primary barriers preventing greater investment in energy efficient infrastructure.