Lower demand in sustainable construction reported

Demand for sustainable real estate is cooling in most regions, according to the Royal Institution of Chartered Surveyors (RICS).

The RICS 2025 Sustainability report finds that many projects are stalling over high upfront costs and uncertain payback.

RICS says global demand for sustainable buildings has been sliding for several years, with another drop from 41% to 30%. Around 35-46% cite uncertain ROI, payback periods or operational savings as their main barrier to investing

The report also states that almost half of construction professionals still don’t measure carbon on their projects – a share that has actually grown over the past year

Energy-efficiency experts from Exergio, a company developing AI tools for energy efficiency in real estate, say the sector is stuck due to three systemic failures – stalled demand, unclear financial value and weak operational follow-through.

Donatas Karčiauskas, CEO of Exergio, adds that without scaleable, AI-driven optimisation of day-to-day operations, even certified or renovated buildings will keep missing climate and performance targets.

'You can’t improve what you don’t measure, and you can’t measure what you don’t have the skills to assess. Right now, most carbon decisions are built on assumptions instead of real evidence,' says Karčiauskas.

He believes the combination of missing carbon data, limited expertise and inconsistent measurement is precisely where AI can accelerate progress.