Residential Real Estate Switzerland
The Road to CO2 Neutrality
Our partner Realstone SA carried out an extensive reconstruction and added two additional floors. This created a total of 13 new residential units. At the same time CO2 emissions were reduced by an impressive 38% while, rents were increased by 30%. This not only underlines Realstone SA's clear commitment to ecological construction, but also demonstrates the successful increase in the value of the property and the improvement in living comfort for future tenants.
Switzerland faces a critical challenge: Buildings are responsible for a whopping 40% of energy consumption and 26% of CO2 emissions. But what is the measurement basis for these figures?
Current calculation methods vary widely. This leads to a lack of transparency and makes comparisons almost impossible. Often, averages are taken, models are run, or other assumptions are made. These usually do not correspond to the actual measured values.
Ambitious targets are needed to achieve the federal government's net-zero goal by 2050; 63% of buildings still use fossil fuels, and only 1% are renovated annually. The transition to renewable energy is inevitable. It will require transparency, government support, and experts willing to take on the challenges.
In our latest White Paper, we highlight the challenges and opportunities on the way to CO2 neutrality for Swiss real estate. Using two examples, we explain which parameters are measured and how these measurements should be carried out. In addition, we use a concrete example to show how Realstone's real estate experts deal with this issue. With transparency as our guiding principle, we are working together to create a sustainable and environmentally friendly future for the real estate industry.
Focus on calculation methods
Different calculation methods lead to different energy consumption results. The use of Energy Reference Frames (ERFs) and data collection based on actual data or estimates can lead to significant differences. The scope of data collection includes Scope 1, 2 and/or 3 depending on the emission source, further complicating the transparency of the assessments.
Realstone's renovation expertise: a success story
Realstone SA demonstrates its expertise not only in accurate CO2 calculation, but also in practical implementation. As a calculation method, Realstone SA always uses measured data, never estimates. An outstanding example is the renovation and extension of a property by two floors. This project was? completed on 1 June 2021 with 13 new apartments. CO2 emissions were reduced by 38%, while the number of tenants increased by 30%. Particularly noteworthy is the use of photovoltaic panels on the façade and roof, which provide 80% of the electricity required (40 kWh/day).
This example shows how Realstone successfully undertakes renovation and development projects to improve the sustainability and profitability of buildings. It also highlights their expertise in real estate development and management.
SWAPs: A smart option on the road to carbon neutrality?
Managing real estate assets requires extensive knowledge and resources. That's where SWAP options come in, offering pension funds the opportunity to increase returns on real estate investments and overcome financial hurdles. Partnerships such as the one with Realstone Investment Foundation provide access to economies of scale and a stable cash flow of 3.0% well into the future.
CO2 neutrality and SWAP opportunities for sustainable investments.
CO2 neutrality is an important step in the fight against climate change. Swiss pension funds should use the expertise of companies like Realstone to promote sustainability. The increasingly complex management of investment properties requires market proximity, expertise and specialization. SWAP options offer a solution to overcome administrative and financial challenges. Overall, real estate investments remain attractive to investors and pension funds seeking long-term stability and profitable investments. Read our newsletter to learn how you can successfully navigate the path to carbon neutrality.
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Christoph Beck
Senior Client Advisor Market Switzerland
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