Real Estate Summit - Preliminary Conclusions

In November 2022, a group of leading and enquiring minds from both the real estate sector and planning were brought together by the Reading Real Estate Foundation for our inaugural Real Estate Summit. The subject was Sustainable Real Estate: A Force for Societal Change in the UK.

Panellists and speakers came from many fields, bringing together public, private and third sector professionals and academics. Our aim was to approach the subject of sustainable real estate from all angles - financial, social, environmental and to discuss what the concept really means.

OUR CONCLUSION

That to generate the returns and prosperous society we seek, far more needs to be done and we need to do it together. It is not possible to separate the economy from environment, society and governance - these issues cannot be tackled either singly or by one part of the economy. We need to drive a unified response and holistic approach, bringing together the private and public sectors, government and academia. During the summit, attendees were presented with examples of where a joined-up approach can deliver real, sustainable solutions - and where opportunities have been missed. By laying out the current economic challenge, we can see how real estate may have contributed through past actions. A new value model could reduce economic risks or mitigate their impact.

At the same time, real estate needs to do its part to reduce inequality across the UK’s regions if the country is to prosper. When the UK is compared to other countries there is a clear productivity gap, yet there is no clear plan to address this from any sector, including government. 

Both now and in the future, a proper and tangible focus on environmental, social and governance (ESG) will be the foundation for real estate valuations and investment strategies. As presenters outlined, the relationship between the environment and financial performance can no longer be separated, but the industry needs to do far more in terms of measurement and reporting.

Societal impact is even harder to quantify - real estate investors increasingly require an understanding of social value, yet this can mean so many things. The future of real estate is being shaped by how properties meet the needs of people and businesses today, but to understand what those needs are requires joined-up thinking.

For too long, the commercial real estate sector has not been recognised by the government for the potential it has to create sustainable wealth. Real estate is not just a sector that responds to the economic barometer – it can set the barometer. The properties we create and manage are where business happens. Without the right real estate, people cannot drive economic growth. And the more ESG can be considered using robust data, the more the financial and use value of real estate can spur economic growth and deliver stability.

So our conclusion led us to ask two questions:

1) How can the real estate industry better demonstrate its role to the government?

2) And how can it act as a pivotal conduit for delivering not just enhanced productivity for the economy but also lead to positive societal and environmental

Share your thoughts as to how these questions can be answered below, on our social media, or by email. 

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