Do you want to make your fortune while saving the environment?
All investors want investments that earn great returns, and those that contribute to the greater good at the same time. The truth is that if your investments are both:
- Profitable
- Good for the environment
Then your investments will have:
- Great long term returns
- Less volatility (lower risk)
However…
It is difficult to find sustainable real estate investments that are profitable.
If you want to profit from sustainable real estate properties AND lower your environmental footprint, you need to understand sustainable real estate investment growth.
If you don’t know the right strategies and know where to find these profitable properties… You will likely miss a huge opportunity.
This article will show you how to find these investments, and help you earn consistent and great profits with sustainable real estate investments in this guide.
Let’s get into it!
What you’ll learn:
- Why Sustainable Real Estate Investments Are Booming
- Green Investment Advantage
- 6x Sustainable Real Estate Strategies That Work
- How To Find Profitable Green Properties
Why Sustainable Real Estate Investments Are Booming
Sustainable real estate investments provide serious benefits for the wise investor. If you haven’t already started creating a sustainable green portfolio, then here are three reasons why you should.
Gigantic Market Growth
The sustainable real estate market is seeing explosive growth as we speak.
The reason? The global green buildings market size reached $565.33 billion in 2024 and is expected to reach $1,374.23 billion by 2034. That’s a 9.42% CAGR!
Now here’s the catch…
Increased demand means better investment opportunities.
The smart investors who can see this trend are getting in position now, before prices become even higher. A lot of homeowners who want to sell their house in Virginia Beach are getting in this now.
Higher Returns
Sustainable properties should be thought of as a high-end investment.
Why? How can you be sure that green buildings offer better returns? The statistics will give it to you. There are rental premiums for green-certified buildings that average at 7% in North America and 10%+ in the rest of the world.
This premium exists because tenants prioritize sustainability more and more. Businesses that care about corporate social responsibility actively seek out spaces that represent their environmental values.
Note: Properties that have a LEED certification attract higher-quality tenants and have lower vacancy rates.
Operating Costs
One of the largest benefits of sustainable real estate investments are the operating cost savings. Eco-friendly features reduce utility bills and government incentives provide even further boosts to the bottom line.
A win-win-win!
Green Investment Advantage
Green real estate investing is unique from traditional investing. Investing in green real estate is different because you need to consider every environmental impact of a property.
This includes:
- Energy efficiency
- Water use
- Sustainable materials
- Waste management
Investing in a sustainable real estate portfolio takes a lot more research than traditional investing in properties does. But the benefits don’t end with only financial gains. The key to green real estate success is understanding both the profit potential and the environmental impact.
That’s different from traditional investing, where you are only concerned with the monthly cash flow and the appreciation, without accounting for the environmental impact. Properties like these require a lot more attention to the certifications and features.
6x Sustainable Real Estate Strategies
These are the strategies for sustainable investing. These 6 strategies that research shows generate the type of results you want to see: Big returns and positive environmental impact.
If other successful investors can do it… You can too. Go through each of the strategies, pick the ones you like the best and put them into action until you start to see those results. Sustainable real estate investment success is really that simple!
Go for LEED Certified Properties
In sustainable real estate investing… Certifications are still king.
The reason: The most surefire way to sustainable and profitable returns is by investing in officially certified green buildings. LEED certified properties provide measurable benefits that turn into profit.
For example, LEED-certified buildings produce 34% lower CO2 emissions and consume 25% less energy than non-certified buildings. This massive efficiency improvement means property owners have drastically lower operating costs.
It’s profitable because the building offers so much value to tenants and buyers. Green certifications on a building make it incredibly desirable for environmentally conscious renters and buyers.
So where do you find these certified properties? The first place you should be looking are properties that have:
- LEED certification
- ENERGY STAR ratings
- BREEAM standards
- Green building council recognition
The secret to investing in green properties that actually are profitable is making sure the properties you buy have already proven sustainability credentials. You don’t want to have to figure it out yourself, so start with the already certified properties and then expand out from there.
Solar-Powered Investment Properties
Solar panels are an easy way to invest in properties that earn you money every single month. Solar panels on your property will allow you to benefit from lower electricity bills, net metering credits and higher property value.
Energy-Efficient Multifamily Properties
Multifamily buildings give you the biggest opportunity for sustainable investing. These investments allow you to implement green features across multiple units at a time, increasing your cost savings tenfold while also charging higher rents to eco-conscious tenants.
Green Retrofits
Your most profitable opportunity is in retrofitting existing buildings. You should purchase older properties and then upgrade them with new energy-efficient technologies like LED lighting, smart thermostats and better insulation. Most of the time, these upgrades will pay for themselves within 3-5 years.
Sustainable New Developments
Sustainable new developments are on the cutting edge of efficiency and will provide you with maximum returns. New properties that incorporate advanced green technology and are built to meet future environmental regulations.
ESG-Focused REITs
If you don’t have the capital for direct ownership, then you can always look into ESG-focused REITs. These allow you to invest in sustainable properties with smaller sums of money. The benefit is that the investment company will do the research and property management and will spread out your money across many different green properties.
How To Find Profitable Green Properties
If you want to find sustainable properties that are profitable, then you need to use some special research tactics. Here is exactly how you can find the best sustainable investment properties.
Go Through Green Certifications
The first thing that you should be looking at is the green certifications. LEED certifications like LEED Gold, ENERGY STAR ratings above 75, and energy consumption data are some of the things you should be on the lookout for.
These certifications will give you measurable benefits and also usually go hand in hand with higher returns. The problem with a lot of buildings today that don’t have certification is that they might think they are green, but they can’t give you any verified numbers.
Look at Total Investment Opportunity
Don’t just be looking at the purchase price of a property. Take the total cost of ownership into consideration, including projected savings on utilities, reduced maintenance costs, available tax incentives, and potential to charge premium rents.
This type of analysis can help you discover true profit potential from sustainable properties. A lot of investors walk past great opportunities because they are only looking at the initial investment costs.
Don’t forget to look at local incentives as well. There are state and local incentives for energy-efficient upgrades that can seriously improve your ROI.
Profitable Sustainable Real Estate Investments Summary
You now have 6 sustainable real estate investment strategies that will allow you to build your wealth while also being good for the environment. The tradeoff with green real estate investing is that you need commitment, but the financial and environmental returns are totally worth it.
The sustainable real estate market is in the middle of a boom right now. There’s going to be a lot more opportunity for those who are early to the trend!
