Green financing in real estate development

Abstract

This dissertation explores how green finance tools influence real estate value and buyer behavior in Lisbon, Portugal. The research adopts a document-based analytical approach, drawing from official statistical data, institutional reports, and property listings, supplemented by professional field observations. The findings highlight that energy-certified properties, particularly those with A or B EPC ratings, tend to perform better in terms of sale speed and pricing, suggesting the existence of a "green premium". However, the impact of green finance tools remains limited, as most buyers, sellers, and developers are either unaware of these instruments or reluctant to use them due to bureaucratic complexity. This gap between policy and practice is central to the work’s conclusion. The dissertation argues that sustainable practices in real estate should be viewed as opportunities for investors and urban development, necessitating deeper investment in awareness campaigns and cross-sector collaboration. Ultimately, the research underscores the urgency of accelerating the practical application of green finance tools, advocating for a collective mindset shift where sustainability is a primary driver of long-term value and social responsibility. In this context, the Portuguese real estate sector holds the potential to be a catalyst for a meaningful green transition.