A report from the Royal Institution of Chartered Surveyors (RICS) revealed that demand for sustainable buildings and carbon measures have slowed across construction projects.
The RICS 2025 Sustainability Report, based on input from more than 3,500 professionals operating across 36 countries, warns that momentum behind sustainable development risks stalling without stronger policy intervention.
The research found that despite continued appetite for green and resilient real estate, demand has weakened, particularly across the Americas. This loss was mainly due to a drop in occupier and investor interest and seems to be in response to a change in U.S. policy focus.
There has also been a slowing in demand growth in markets such as Europe and Asia-Pacific. Regions in the Middle East and Africa remain the only markets to show strengthening momentum.
Nicholas Maclean, acting RICS president, said: “Transformation across the built environment is necessary if we are to meet the challenge of climate change.
“This important RICS research shows progress, but also clear signs of fatigue and uncertainty. Governments, industry and professional bodies must work together urgently to unlock investment, strengthen policy and scale up skills to deliver a truly sustainable future.”
Contributors report that green or sustainable buildings are attractive investments but have high initial costs. Furthermore, a lack of evidence of a return on investment and lack of investor awareness are the biggest obstacles to investment.
The construction sector has not progressed in adopting sustainable practices, particularly in meeting carbon emissions. Around 46 per cent of professionals in the construction sector said they do not measure carbon actions. The report found that this share increased in 2024, while the share reporting that they do measure emissions have declined.
The RICS warned that without mandatory whole-life carbon assessment and reporting, the sector will not be able to reach national and global decarbonisation targets.
To accelerate climate progress, policymakers must set national emissions limits aligned with net-zero pathways. They must also expand incentives and financing for green retrofits and low-carbon materials. Policymakers must also prioritise investment in sustainability skills and strengthen biodiversity legislation.