The Asia Pacific real estate market is navigating a complex global landscape, facing headwinds from trade tariffs and geopolitical tensions that impact investor confidence and business strategies. Simultaneously, intensifying extreme weather impacts underscore the urgent need for climate resilience. JLL surveyed APAC-based commercial real estate investors in May-June 2025 to understand their sustainability perceptions amidst these pressures and uncertainties.

Sustainability is now integral to investment decisions and value across APAC. The survey reveals that an overwhelming 91% of investors have factored sustainability into their deal decisions in the past 12 months. This focus affected deal values, with 63% of investors reporting that sustainability considerations impacted their bid offers.

Investors are primarily motivated by the financial viability and returns of enhancing assets and the potential for mitigating risks. Nearly half see sustainability as a key value driver, expecting higher asset valuations and lower insurance costs through minimizing climate risks. Demonstrating the business case for sustainable retrofits – highlighting lifecycle costs and benefits such as reduced operating expenses and increased asset value – is crucial for driving investor action.

Our survey highlights that energy efficiency and renewable energy are becoming essential criteria for future investments, even surpassing green certifications in importance.

Investors are prioritizing energy efficiency to comply with evolving regulations, reduce operating costs, and increase tenant appeal. Energy efficiency has emerged as a leading “must-have” for investors over the next three years. In fact, 60% of investors validate the sustainability initiatives in their investments through energy efficiency metrics. Consequently, they are seeking data-driven solutions to improve building energy performance and planning smart building technology enhancements for energy analytics and AI optimization.

The adoption of renewable energy is becoming a standard requirement for asset decarbonization. Investors are targeting assets powered by renewable or clean energy sources and exploring the potential for on-site renewable energy in existing assets. Over half are planning to implement renewable energy installations as part of their asset enhancement strategies within the next five years.

^{Q: Where does your organization stand in embedding physical climate risk adaptation in your portfolio?}

While short-term economic uncertainty and geopolitics dominate headlines, the accelerating impacts of climate change and environmental risks cannot be ignored. The convergence of climate risks, regulatory pressures, and rising demand for sustainable, climate-resilient properties is creating significant opportunities for investors, and in turn reshaping investment strategies and asset values across APAC. Investors who proactively embed sustainability in their core investment strategies will be best positioned to thrive in this evolving landscape.