European real estate shows energy performance gains

The Deepki 2025 Index, a European benchmark of real estate environmental performance based on real consumption data from over 400,000 assets, indicates improvements in energy performance across European real estate.

Real estate - Deepki

Most property types studied have reduced energy consumption since 2022: logistics (20%), offices (16%), health (13%), and housing (12%). This progress is partly due to energy efficiency regulations and changing building use.
The hotel sector has seen an 18% increase in final energy consumption since 2022, correlating with occupancy returning to pre-pandemic levels.
The retail sector, after a spike in energy use, has seen a 9% decrease this year, bringing consumption closer to 2022 levels.
Despite progress, the real estate sector is still far from reaching the Paris Agreement target.
The UK has generally seen a decline in average energy consumption across all property types since 2022, with logistics and health sectors showing significant decreases. Hotels are the exception, with consumption levels plateauing slightly above 2022 levels. Despite improvements, the UK real estate sector remains a major CO2 emitter, highlighting the need for continued energy efficiency investments.
France continues to demonstrate strong efficiency gains across all real estate types, driven by the Tertiary Decree's binding requirements. The logistics sector has significantly reduced energy consumption compared to 2022, coinciding with e-commerce levels normalizing. However, French hotels have seen an increase in average final energy use compared to 2022, potentially linked to increased demand from hosting the Olympic and Paralympic Games.
Germany's real estate sector continues to show decreases in final energy intensity, with both offices and logistics sectors reducing energy usage. Compared to 2022 levels, the decreases in consumption across the office and logistics sectors are even more pronounced.
Sandrine Fauconnet, senior associate, ESG & Sustainability at Stoneweg, commented: "The Deepki Index is much more than just a tool: it is the benchmark that the market needs to transform its ambitions into concrete actions."
Flora Adamian, senior analyst, Sustainability at Bellwether, stated: “Clear, data-driven benchmarks are important for advancing sustainability in real estate. Tools like the Deepki Index can help bring greater transparency and alignment across the industry.”
Vincent Bryant, CEO and co-founder of Deepki, added: “The Deepki Index reveals that while European real estate has made energy improvements in recent years, progress remains fragile and uneven, often driven by macroeconomic factors and weather, rather than structural change. These factors represent an opportunity for real estate players to align sustainability with financial performance by leveraging sustainability to reduce vacancy. That being said, the sector remains far from meeting the targets of the Paris Agreement, which will require continued commitment and decisive action.”