Real estate: Study: Sustainability criteria influence financing terms for real estate projects

 Sustainability criteria are increasingly being taken into account by banks when financing real estate projects in Romania, and buildings that meet green financing standards may benefit from more favourable lending terms, according to a study by real estate consultancy Colliers.The findings are based on the first study of its kind conducted by Colliers on the Romanian market, drawing on responses from four commercial banks, which together hold more than half of the assets of Romania's banking system, and two multilateral development banks active in the real estate sector."The clearest requirement identified for new buildings is the NZEB-10% standard, which is applied by all the institutions analysed. As this criterion becomes increasingly important in the granting of green financing, the difference between energy-efficient buildings and less efficient ones will become more evident, both in terms of access to financing and the conditions offered," the study's authors state.A valid Energy Performance Certificate and documentation confirming compliance with the NZEB standard are also basic requirements for all institutions that took part in the study, the source notes."A project that does not comply with the NZEB-10% standard can still be financed by a commercial bank. However, the loan will generally not qualify as green financing, meaning that the benefits associated with this classification will no longer be available," the press release adds.In the case of multilateral development banks, failure to meet the criterion may even affect a project's eligibility for financing or for classification as a climate investment."LEED, BREEAM, EDGE or Green Homes certifications are not mandatory for obtaining a standard loan, but they can help a project qualify as a green investment and secure better financing terms. Some institutions require minimum certification levels such as LEED Gold, BREEAM Excellent or EDGE Advanced in order to include buildings in their sustainable portfolios," the study's authors explain.In addition, three of the six institutions verify that certification is maintained throughout the life of the loan, with the loss of certification potentially resulting in the financing being reclassified, the report says.Four institutions also require or closely assess decarbonisation plans, which in some cases must include clear deadlines and budgets for the investments required.Banks are also increasingly scrutinising how developers and investors manage sustainability across their entire organisation, rather than focusing solely on the performance of an individual building."Five of the six institutions ask whether companies have a sustainability strategy and scientifically validated emissions reduction targets, while four require data on both direct and indirect emissions," the press release states.Against this backdrop, the assessment of existing buildings is becoming increasingly dependent on operational performance and the ability to demonstrate progress over time.Assessments are based on legislation, energy performance class, the EU Taxonomy, international standards and each bank's internal rules. One institution requires at least Energy Class C even for standard loans, which may indicate the direction in which the market is heading."The participating institutions identify the main obstacles as the lack of data provided by clients, the cost and complexity of the required documentation, and the absence of clear national benchmarks for identifying the most energy-efficient 15% of buildings in Romania," the press release says.According to the study, the gap between energy-efficient buildings and those requiring significant investment to meet the required standards will continue to widen. This difference will be reflected not only in financing costs, but also in a property's chances of being refinanced, let or sold.Developers and investors who integrate sustainability from the earliest stages, prepare the necessary documentation and can demonstrate a building's performance over time will enjoy an increasingly clear advantage in their relationships with lenders, the report adds.In 2025, more than 180 BREEAM and LEED certifications, along with more than 70 WELL Health-Safety and Access4you certifications, were awarded in Romania for projects covering approximately 4.6 million square metres, according to Colliers data. Office buildings accounted for 107 certifications, followed by retail projects with 81 and the industrial and logistics segment with 59.