Major trends

According to the IPCC's Sixth Assessment Report, climate change is a long-term risk that requires rapid and sustained reductions in greenhouse gas emissions across all sectors. Although the various conflicts currently underway have altered executives’ priorities, some 71% of real estate executives consider environmental issues to be a major concern (Source: Emerging Trends in Real Estate® Europe 2025, PWC & Urban Land Institute).

The goals of the Paris Agreement and the outcome of COP29 underscore the importance of accountability and climate resilience. Developed countries will have to finance the loss and damage suffered by developing countries, presenting a major challenge. Climate change affects investment capital, operating costs and asset obsolescence.

Cofinimmo’s rationale for adopting science-based climate action and joining BACA is based on three fundamental messages:

• businesses need to take more ambitious climate action now;
• only collaboration with all stakeholders will enable the transition to a net-zero economy;
• science-based climate action is the most effective way to achieve the targets set.

Through the 30³ Project, which aims to reduce the energy intensity of Cofinimmo’s portfolio by 30% by 2030, the Group intends to take up this challenge on scope 1, 2 and 3 and thus maintain the value of its assets by complying with the Paris Agreement. This project is the key to achieving the objectives validated by the Science-Based Targets initiative (SBTi).

Water is essential for human life and activities, and climate change requires this resource to be managed sustainably. Chronic water-related risks, such as droughts, threaten the European economy, especially agriculture. The United Nations is promoting the dissemination of information on water scarcity to safeguard water supplies.

The real estate sector needs to proactively address water scarcity by following the 3Rs: Reduce, Reuse, and Recycle. This includes collecting data on water use and using green infrastructure such as permeable paving, green roofs and bioswales. In the face of extreme events, real estate can protect the environment by analysing water use and integrating sustainable solutions to strengthen asset resilience.

The accelerated ageing of the population has an impact on social models, particularly the age of retirement and the organisation of healthcare. Healthcare real estate needs to adapt by offering flexible care buildings and accommodations tailored to the different levels of autonomy of individuals.

Analysts are broadening the concept of simple accommodation to include care, thereby encompassing the healthcare sector and responding to the need for housing for the elderly. This trend is covered by Cofinimmo's healthcare real estate strategy, which aims to respond to the needs of society in this matter by providing housing solutions for elderly people who are ill, disabled or undergoing rehabilitation; creating socially responsible healthcare facilities where all functions coexist in harmony; promoting access to buildings for people with reduced mobility; and developing safe, comfortable buildings.

With the majority of the world's population living in urban areas, increasing urbanisation poses challenges in terms of integration, housing, mobility and pollution management. According to the Joint Research Centre (JRC), Europe's large cities will continue to grow until 2030.

Inflation and rising energy prices are making housing less affordable. The COVID-19 pandemic has accentuated the need for more spacious, less densely populated environments. This trend will influence the design of real estate to meet new health and safety expectations.

Mobility is gradually being rethought in the context of growing urban populations, pollution and the fight against greenhouse gas emissions.

Cities such as Paris and Brussels are rethinking mobility to reduce pollution by excluding polluting vehicles and promoting electric public transport and micro-mobility.

Cofinimmo supports these initiatives by testing solutions for shared vehicles and installing infrastructure for cyclists in its buildings. This means reducing the number of parking spaces, installing charging stations for electric vehicles and increasing the number of bicycle racks.

As the geographical location of assets is particularly important, their accessibility (linked to mobility) has become a real social issue in recent years. In the case of healthcare, nursing and care homes are occupied by elderly people who may feel excluded from society. Ensuring that facilities are accessible allows residents to mix with the community, which helps prevent them from feeling excluded.

As natural resources are limited, circular economy initiatives are being promoted by the European Commission and others to reduce waste and increase the reuse of materials. In this context, Cofinimmo seeks to select sustainable materials for its (re)development work, so that they can be more easily recycled or reused. The use of plastics is limited upstream as packaging for building materials or as building materials (such as insulation) during the construction of a project.

Life cycle analysis is a powerful tool for understanding the environmental impact of building construction and operation in terms of embodied carbon, operational carbon and resource depletion. This approach makes it possible to understand how to create a virtuous circle that reuses and recycles resources at the end of a building's life. During demolition, waste is rigorously sorted, and in operational office buildings, every effort is made to encourage sorting beyond the legal requirements.

Awareness of the importance of limiting carbon footprints is leading more individuals and businesses to adopt the principles of the sharing economy. This allows people to use products without owning them, providing flexible solutions and reducing capital expenditure. According to recent studies, colocation and hybrid models that combine different uses in the same building are becoming more common.

Several sharing applications are already impacting office real estate, such as shared meeting rooms and coworking spaces. The trend towards teleworking is reinforcing flexible working models and companies are looking to expand their spaces for new forms of collaboration.

The sharing economy will also extend to residential real estate, with homes incorporating more communal spaces. These homes will target specific groups such as Generation Y and senior citizens, particularly through serviced residences.

In the countries where Cofinimmo operates, the shrinking workforce due to ageing and low birth rates is creating a war for talent. Companies must therefore offer a balance between personal and professional life, as well as meaningful work to attract new talent and retain their employees.

In its buildings, Cofinimmo ensures the health and safety of its occupants by offering innovative infrastructures and services such as concierge services, relaxation areas and personal services. New certifications complement the existing environmental ones, assessing buildings according to criteria related to human well-being, such as access to quality air and water and contact with nature.

In the medium term, the health and economic crises will accelerate the inevitable digital transformation of the construction and real estate sectors. Adopting new technologies such as the Internet of Things, augmented reality and artificial intelligence (AI) will contribute to the longevity of businesses.

In 2024, the European Union published a Regulation relating to AI in order to guarantee security and fundamental rights to the users of applications such as ChatGPT and Copilot. Cofinimmo is aware of the risks associated with using AI and is committed to protecting the confidentiality and integrity of information.

The Group's AI policy requires all parties (employees and consultants) to use AI tools in a responsible way and in accordance with best security practices.

Today, technology allows us to go beyond the automation of repetitive tasks, offering assistance in more complex intellectual processes, customer relations, equipment maintenance, fault management and energy management.

Cofinimmo uses these technologies in the renovation of its buildings to reduce greenhouse gas emissions. Widespread teleworking is seen as the ultimate test of digital transformation in the world of work. Teleworking policies introduced in companies that have invested in digital capabilities are proving very popular with employees.

Technology is enabling us to move from curative to preventive medicine. The Internet of Medical Things is enabling more dynamic healthcare management. Sensors can even trigger emergency calls in the event of abnormalities, reducing the length of hospital stays. Telemedicine and electronic medical records (EMRs) increase the flexibility of healthcare environments, allowing patients to access care from their connected devices.

EMRs reduce the space needed to store records, freeing up space for other uses. New types of healthcare real estate assets are being developed to cater for an ageing population with high levels of autonomy, such as rehabilitation homes and day centres.

The new generation of seniors wants to stay in their own homes for as long as possible, and technological developments in healthcare will enable them to do just that. So society needs to think in terms of flexible housing that can evolve according to the stage of life the person is in.