Property groups across Europe risk major writedowns unless they take urgent steps to reduce carbon emissions from buildings they own, according to the Urban Land Institute.
Property owners, investors and valuers have failed to account for the cost of transitioning to net zero, the ULI said, resulting in a widespread overvaluation of offices, shops and residential property, which it describes as a “carbon bubble”.
“If transition risk costs are not factored in now by owners, then the industry could face a major crisis.”
