ESG Proptech Trends For A Sustainable Future In Real Estate - Forbes | Canada News Media
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ESG Proptech Trends For A Sustainable Future In Real Estate – Forbes

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One side effect of the Covid-19 pandemic was that it forced us, as a global community, to once and for all come to terms with the fact that we are inextricably interconnected on a massive scale. Local actions can have global adverse reactions, tail risks are not as remote as we think, and the world we live in is much more fragile than we thought. The climate crisis that had temporarily taken second place during lockdown is once again front and center on the private and public agenda, as we experience more and more of its negative impact. According to the UN, global temperatures will inevitably increase by 1.5 degrees by 2030, but we are still in time to avoid a catastrophic 3 degree increase if we rapidly reduce global emissions on the broadest scale possible.

 Against this backdrop, it is unsurprising that built environment stakeholders – it is responsible for 40% of greenhouse gas emissions worldwide – have definitively woken up to the importance of ESGs. This is having a positive effect on tech deployment within the industry. I discussed why this is the case with Jake Fingert, managing partner at proptech VC Camber Creek, which is investing significantly into ESG tech.

According to Fingert, there are three main driving forces behind the ESG narrative in real estate.

Financial investors are more and more interested in sustainability and carbon footprints. Long-term investors such as pension funds view their investments through a 30-plus year lens and to them it is a no-brainer: if we don’t take care of the planet, this will have an adverse effect on their long-term investments, as climate change does massive damage to the global economy. When these large investors focus on a problem, real estate owners and operators have a strong incentive to focus as well.

On the other side of the equation, corporate tenants and residents care about the environment and climate change much more than they did in the past. Consumers increasingly want to be in a building that is certified carbon neutral, they want to work for companies that care about the environment. As this segment of stakeholders grows, it drives change.

Finally, governments have a massive impact on ESG adoption. In the US, for example, local law 97 in New York mandates CO2 emissions reductions, and at the federal level there is a lot of talk around federal legislation on climate. In Europe, access to the circa €750 billion in Recovery Fund monies hinges on countries’ abilities to reach a 55% emissions reduction target by 2030, and the goal of becoming carbon neutral by 2050. Government measures globally will be carrots (and sticks) to encourage real estate owners and operators to improve on ESG measures.

These three measures are creating pressures on the market, pushing real estate owners and operators to take sustainability seriously and act on it. As Fingert puts it, “ten years ago, some companies were leading on the sustainability front because their principals were doing it for altruistic reasons. Today, real forces are coming into play, putting pressures beyond these reasons.”

Fingert went on to share that Camber Creek is particularly excited about the ESG tech space, and has been investing in it for over four years.

He reckons that the first step on the path to ESG excellence is to be able to accurately track and report carbon waste and energy usage. In order to make changes, you first need to measure what is actually happening. According to Fingert, Measurabl (an ESG tech platform for real estate) is the global leader in this space, and this is why Camber Creek first invested in them four years ago and followed through in their recent $50 million Series C round.

The next problem to solve, once you’ve identified and started to measure ESG underperformance, is what to actually do. There are a number of targeted solutions on the market to help companies improve their footprint. One example Fingert gave is Arcadia (a US tech company unlocking nationwide access to energy data and renewables) whose platform helps people access community solar power; Camber Creek recently invested into their $100 million Series D round, alongside Tiger Global. Tiger’s investment highlights another growing trend – the increasing interest that generalist investors have in the ESG tech space.

In general, technology will drive efficiency and help reduce consumption across the built environment. A broad variety of tools is on offer, from sensors on HVAC systems to tools to measure indoor air quality and purify it. As the pool of targeted tools expands, their value-add will improve.

Another thing Fingert has a keen interest in is carbon capture in construction. There is an array of solutions on the market, such as those provided by Exxon, 1PointFive, and Carbfix. The application of these technologies in construction is still in its early stages, but Fingert reckons it is a space to watch, as on the one hand significant funds are flowing info massive infrastructure projects for which there is an urgent need, and on the other hand sustainability has become a crucial requirement. The answer isn’t to avoid building, but to build sustainably, and as legislation for cleaner construction comes into play there will be a flurry of activity in this space.

On a more blue-sky horizon, Fingert finds drone technology to be very interesting in an ESG context. As use cases become more sophisticated, it can meaningfully reduce miles driven on roads for activities such as package deliveries. They will also be used in specific cases such as cleaning windows on skyscrapers or fixing roofs, and as these use cases become more mature, they will do a lot to reduce emissions.

In the long run, ESGs will become instrumental in building and managing cities that run more efficiently. Sustainably is and will remain a core value for businesses and society, there is no turning back.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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