Green Real Estate: 4 Trends Shaping the Industry in 2025

Buildings are significant contributors to global greenhouse gas emissions. They account for nearly 39% of total CO2 emissions, according to the World Green Building Council. 

The urgency to reduce this impact is clear and thereby, the green building movement is gaining momentum around the globe. 

This blog looks at the sustainability trends that will shape the real estate industry in 2025 — from sustainable materials and smart buildings to the rise of circular economy practices. 

Beyond Bricks and Mortar 

The materials we choose for construction can have a profound impact on a building's sustainability. 

Recycled materials, for example, not only reduce waste but also lower energy consumption associated with extracting and processing new resources. 

The Bullitt Center in Seattle, considered one of the greenest commercial buildings the world, is a testament to the power of sustainable materials. This innovative structure utilizes locally sourced, reclaimed materials and even harvests rainwater to meet its water needs entirely. 

Smart design can significantly enhance a building's energy efficiency. Passive design strategies, such as maximizing natural light and optimizing insulation, can reduce energy consumption by up to 50%, according to the American Institute of Architects. 

The Rise of Smart Buildings 

Smart technology is changing the way energy consumption is managed in buildings. 

The global smart building market is projected to reach $182 billion by 2025, growing at a CAGR of 23.2%, according to the Smart Buildings Market report. 

Smart systems can monitor energy usage in real-time, optimizing heating, cooling, and lighting based on occupancy and weather conditions. 

For example, a Europe-based high-tech company partnered with GEP to reduce its GHG emissions and progress towards net-zero target by accurately mapping emissions, with focus on some categories of Scope 3 emissions, which had been under-reported by 50%. 

GEP GREEN, a sustainability solution, provided the company access to an interactive, insights-driven and tailor-made Scope 3 emissions dashboard. The company was able to establish a robust and complete baseline using both spend-based and supplier-specific approaches, with the latter representing more than 60% of the spend. 

Carbon Neutrality 

Many cities and companies are setting ambitious carbon neutrality goals, driving innovation in sustainable building practices. 

The World Green Building Council estimates that green buildings can reduce carbon emissions by up to 50% compared to conventional buildings. 

Over 1,000 cities worldwide have committed to achieving carbon neutrality by 2050. 

Green building certifications like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) have gained more importance in recent years for new construction projects since organizations are leaning towards making a more conscious and sustainable choice. 

Circular Economy and Modular Construction 

Adopting a circular economy approach and prefabricated construction methods can reduce waste and resource consumption and improve efficiency. 

Net-zero buildings which produce as much energy as they consume are also gaining focus. 

The global modular construction market is expected to reach $152 billion by 2027, according to Mordor Intelligence. 

A study by the Ellen MacArthur Foundation found that transitioning to a circular economy can create an additional $4.5 trillion in economic value globally by 2030. 

“Sustainability is no longer a niche concept now. It is becoming mainstream in the real estate sector. Our world requires transformative solutions to address urgent environmental and social challenges,” says Aavni Piparsania, director and sustainability leader at GEP. 

Also Read: Modular Construction Benefits 

Conclusion 

Multiple global coalitions have been working towards the common goal of achieving controlled emissions by 2030 and net zero by 2050. 

Real estate being one of the largest contributors has seen initiatives like Architecture 2030 focusing on green building goals more aggressively than ever. The future of real estate is green. 

By embracing green and smart technologies, we can create buildings that are not only environmentally responsible but also economically viable and conducive to human health. The journey towards a greener built environment may be challenging, but the rewards—both for our planet and our communities—are immense.

Authors: Shilky Gupta and Hridyanshi Dave