Energy Efficiency: Tax Incentives for Real Estate
Modernization is a must for keeping up with today’s challenges in real estate. Learn how energy efficiency is required for maintaining a competitive market position; and how you can get a tax incentive out of it.
Tax Incentives for Energy Efficiency
Global climate and sustainability energy goals outlined by the Intergovernmental Panel on Climate Change (IPCC) pushes for sustainable energy. The IPCC lists energy usage as the cause for two-thirds of emissions.
PropTech allows buildings to achieve sustainability goals and qualify for green building tax incentives. Increasing property valuesthrough greater efficiency, reduced carbon emissions, and conservation of natural resources.
The European Commission found PropTech and high-performing buildings can increase rental values by up to 11.8% for commercial buildings.
Tax incentives for efficient energy systems not only assist in covering costs but gets companies a quicker payback time for their investment, leading to quicker net gains. A fast no-cost site survey and estimation of energy savings defines the payback timeframe and gives you certainty that your investment in PropTech is worth it.
Keeping Up with the Competition
What is PropTech?
PropTech is a digital transformation that brings efficiency to the real estate market. It requires a mentality change and leveraging innovative products and business models.
Who is Using PropTech?
CBRE real estate found the most PropTech funding was received by property management startups ($2 billion YTD) and construction ($1.9 billion). CEO of Urban Land Institute, Ed Walter, brings attention to real estate historically being a technology focused industry and how essential PropTech is for maintaining a competitive market position.
A Goodwin study found, 80% of real estate companies with PropTech had positive outcomes on operations; especially in decision-making and finances with 70% seeing positive results. tax incentives and increase property value.
Some popular companies adopting PropTech include: Zillow in home sale listing; Airbnb in vacation rental listing; TenX, OpenDoor, and Purplebricks, in real estate sales; VTS (View The Space) in commercial real estate; and Habiteo in real estate development.
Why is Real Estate Using PropTech?
Real estate companies are choosing to implement PropTech for management and financial streams, tenant relations, data analytics, health and wellness, and climate impact forecasting.
Companies are deciding to adopt PropTech for Data analytics (63%), health and wellness (56%), property management (51%), and climate concerns (43%).
In Summary
Government concern for climate risk has resulted in a demand for sustainable energy. Tax incentives are available making PropTech an affordable investment with a high ROI. Energy efficient buildings increase commercial real estate rental values by 11.8%.
PropTech gives you a competitive edge. Big names such as Zillow and Airbnb have gained popularity from adopting PropTech.
80% of real estate companies with PropTech have positive outcomes from investing in energy efficiency.
At Unify Energy Solutions, we design customized, cost-effective solutions that streamline operations and keep your tenants comfortable and safe.
Contact us today to get started on an efficient and scalable building automation system!