Converting the entire housing stock in Spain to an ecological basis will cost up to 350 billion euros

Converting the entire housing stock in Spain to an ecological basis will cost up to 350 billion euros

The forecast for Europe as a whole rises to 7 trillion euros, according to a report by real estate consultancy Colliers, which says renewal in Spain should focus on housing that is more than 15 years old.

More than 130 countries are committed to neutralizing greenhouse gas emissions by 2050.

It is a new trend and a sustainable transformation that will entail multi-million-dollar bills, including in Spain, and which the sector is already starting to count.

“The European Real Estate Fund will have to be renewed over the next 25 years if we are to meet the EU’s 2050 zero emissions target,” says Alberto Diaz, Managing Director of the Capital Markets at real estate consultancy Colliers.

“The required investments are equivalent to the same annual investment in 25 years as in the whole of Europe in the real estate sector: about 300 billion per year. It remains to be seen who will bear these huge renovation costs: investors, owners, governments or society at large,” says Diaz.

What is Spain’s share?

The Spanish market represents a relatively small percentage of the total, but considering the amount, it is significant. “The real estate investment market in Spain accounts for about 5% of the total volume of direct investments. If we take this figure into account, then we can assume that in the coming years in Spain should be spent at least 5% of the total estimated amount for recovery and sustainable development, which will amount to about 350 billion euros,” - explained in the company elDiario.es.

“The main goals of renovation to achieve sustainable development and energy efficiency goals should be set in the historic housing stock, built more than 15 years ago, and a large proportion of office buildings in the main cities of Spain, with a particular focus on buildings occupied by public administrations,” says Colliers.

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