Catella: Sustainability funds gain ground with investors
The new Catella Market Tracker “Sustainability funds in the real-estate industry – focus on Europe” analyzed the market for sustainable real-estate funds: the results indicate a clear focus of investors on Germany, Switzerland and Austria.
The process of transformation of the finance industry shaped by sustainable investment aspects is gaining pace. There are two characteristics that define sustainable: an investment approach based on management of finance products, and the property level, i.e. a focus on the lifecycle of the properties in the case of real estate.
“At present, the fund volume of all sustainable real-estate funds is approx. EUR 2.73 billion. This seems to be a lot at first glance, but compared to the entire European market of approx. EUR 11.04 trillion, this segment remains a niche category”, says Dr. Thomas Beyerle, Head of Group Research at Catella. “We were able to identify a total of 9 real-estate funds that are managed according to the basic standards of sustainability”, continues Beyerle.
It becomes apparent that the European market primarily focuses on the so-called DACH regions (Germany, Austria and Switzerland). Switzerland in particular plays a leading role. “In Switzerland, real-estate funds make up 20% of the sustainable investment market. Germany has a slightly lower share, 17%. In Austria, sustainable real-estate funds currently account for only 1.7%. However, we expect this number to increase in the near future”, state the Catella analysts. By 2018, Catella forecasts a fund volume for sustainable property funds of EUR 3.2 billion.
The topic of sustainability has become a firm investment criterion in portfolio management. Sustainable pension and equity products remain the most popular asset classes. However, the market for sustainable real-estate funds is increasing and still has considerable untapped potential.
The complete Catella Market Tracker “Sustainability funds in the real-estate industry – focus on Europe” is available at www.catella.com/research.
For further information please contact:
Dr Thomas Beyerle
Head of Group Research
+49 69 310 19 30 220
Catella is a leading specialist in property advisory services, property investments, fund management and banking, with operations in twelve European countries. The group has sales of approximately SEK 2 billion and manages assets of approximately SEK 160 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.