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The report says that ESG compliance is becoming a crucial factor in attracting finance, tenants and investment across Europe.
The research finds that ESG considerations are essential for accessing finance, securing occupier demand, and ensuring long-term asset viability.
“European real estate markets are entering a quality reset, where asset performance depends on ESG compliance, data transparency, and professional capability,” commented Matthew Leguen de Lacroix, the head of business development for EMEA at SIOR, speaking at MIPIM, the annual global property and investment conference and exhibition, held in Cannes, France.
“ESG has shifted from a reputational consideration to a practical gatekeeper for financing, leasing and long-term viability. Yet members report ongoing uncertainty, concerns about ‘certification theater’ and difficulties evidencing clear pricing impacts. Non-compliant buildings already face exit risk,” the SIOR report concludes.
The object of the study was to review the sentiment of SIOR members. The research focused on both how ESG affects member’s day-to-day project work, and how the application of AI will impact real estate.
At the “Road to Zero” stage at MIPIM, participants reported that, despite the perceived ESG backlash, notably in the United States, many institutional investors remain committed because improved environmental performance is increasingly seen as part of financial performance.
Further, climate events not only damage physical assets directly but also disrupt revenues and increase operating costs. The message was that physical climate risk is already material and must be integrated into development and investment plans.
“We have changed from ESG reporting to sustainability execution. It started last year when we moved from ESG to sustainability, meaning we are moving from reporting to proof of concept and proof of performance, which has direct and indirect impacts on the recipient of the cash flow,” says Hubert Abt, CEO and founder of Workcloud24.
“This means that for ESG in the new world, you have to show operational excellence, which is measured in KPIs towards the peer group, the asset class, and the clusters. Then, for example, service charges and carbon emissions can be compared and these come together to produce a short comprehensive matrix of operational KPIs, which then can be compared to others,” Abt explains.
“Now, with the impact of AI, using this as a tool, we have everything digital and we can immediately use this data to make a rating for a benchmark towards other assets in the same cluster. This is also very important for the financing, as on the part of the bank, the risk assessment is already more than 50-70% driven by AI machines, which do the risk assessment. The same applies to tenants and investors who, through AI, can find the best product. Regulation was the stick and capital markets the carrot; now, since regulation is out of fashion, the capital markets have taken over,” he concludes.
All three phases of the Budapest ONE office building have now achieved the highest BREEAM In-Use “Outstanding” certification, which assesses the actual, operational performance of the project.
The result makes the 66,000 sqm complex, developed by Futureal, the highest-ranked office building in Hungary within the BREEAM framework, according to the developer. Its performance is supported by on-site solar energy generation, which helps reduce tenants’ energy costs.
Describing “exceptionally high percentage scores,” Futureal says, “Auditors rated the building’s performance as outstanding in several areas, including accessibility, flexibility and water management. CBRE participated in the certification process as both an advisor and an assessor.”
The complex was designed with a strong focus on energy efficiency and reducing environmental impact. The office building operates an energy-efficient, intelligent central building management system and is equipped with a heat recovery ventilation system.
A total of 150 solar panels with a combined capacity of 81.76 kWp have been installed on the roof. The system generates approximately 80,000 kWh of electricity annually, reducing carbon dioxide equivalent emissions by nearly 18 tonnes per year. The green energy produced results in annual savings of several million forints overall, proportionally lowering tenants’ energy costs, according to Futureal.
“Our objective with Budapest ONE was to ensure that sustainability delivers measurable results and visible business advantages in everyday operations. Achieving the ‘Outstanding’ certification for the entire building confirms that we are capable of developing long-term, value-retaining office buildings in line with the most stringent international standards,” comments Gábor Radványi, chief architect and head of sustainability at Futureal.
The building also holds the highest “Gold” rating from Access4You, as well as WELL Core “Platinum” certification. Futureal says tenants benefit from a green rooftop garden, bicycle storage with showers, EV, bicycle and scooter charging facilities, selective waste collection, and a nearly 500-meter-long rooftop running track. Inside the complex, there is half a hectare of open community space and green areas.
GSP Global Solutions Provider has leased an additional circa 7,000 sqm at CTPark Budapest Vecsés on a long-term basis.
“The hall leased in CTPark Budapest Vecsés is equipped with modern, sustainable technical solutions. The building already features a solar panel system, motion-sensor-controlled LED lighting and a building management system (BMS) to support energy-efficient operation,” comments Péter Tar, head of regional business development at CTP Hungary.
“Heating and cooling are provided by a heat pump system, allowing the facility to operate without gas consumption. The hall holds a BREEAM ‘Excellent’ rating, confirming its high standard of environmentally conscious design and operation,” Tar adds.
All of the 14.6 million sqm of CTP developed and managed space across Europe is BREEAM-certified, providing on-site amenities, solar energy and green workspaces according to CTP.
This article was first published in the Budapest Business Journal print issue of March 27, 2026.
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