The Real Estate Institute of Australia (REIA) is sending a representative to the upcoming Buildings and Climate Global Forum in Paris this week.

Jacob Caine will represent the interests of the Australian real estate industry as policymakers come together to debate the role of building and how it impacts the environment.

REIA President Leanne Pilkington said consumers, governments, and the industry itself were looking for ways to deal with the environmental challenges with building.

“There are many challenges to adopting more sustainable practices in the built environment, but the emerging evidence is clear that it commands premium outcomes for property owners both for residential and commercial assets,” Ms Pilkington said.

Ms Pilkington said energy-efficient properties have proven to be popular with buyers and businesses.

“Energy efficient homes in the ACT sell for a huge premium: in 2022 this was recorded as up to 99.3 per cent more per square metre; not to mention the ongoing affordability benefits for owner occupiers and renters with cost-of-living pressures,” she said.

“The REIA State of the Industry: Australian Commercial Real Estate demonstrated the opportunities on offer in the commercial space: 70 per cent of occupiers are willing to pay a premium to lease sustainability-certified buildings with 72 per cent of investors believing that green certifications drive higher occupancy, rents, tenant retention and overall asset value.”

However, the majority of residential and commercial stock across Australia is not currently at this standard and require considerable investment to achieve this, she said.

“The question still remains as to how this goal is met and what incentives will be provided to owner occupiers and landlords as we journey to NetZero and where we need low cost innovation to step in,” Ms Pilkington said.

Mr Caine said Australia needs to focus on improving the way they build homes.

“The transition to green buildings is not just an environmental necessity but a golden opportunity for Australia to lead in the global shift towards sustainability,” Mr Caine said.