The demand of sustainable property investments in Germany

Purpose - Socially responsible property investments (SRPI) are seen as the emerging trend in socially responsible investing. The purpose of this paper is to raise the question of whether this trend is also valid for Germany. The results presented in this article are based on an explorative study among German institutional investors in the year 2007. Design/methodology/approach - The authors see the reasons behind the trend of sustainable building in the climate change and the resulting awareness of the investors on this topic. Likewise, the authors also see that more investors, predominantly institutional investors, are focusing on the emerging market for socially responsible investments (SRI). Considering these and the diversified portfolios of the institutional investors which usually include property investments, the authors are investigating the demand of these investors for SRPI in Germany. The investigation is based on an empirical study carried out in 2007 which should be understood as a prolonged insight into the investment preferences of German institutional investors towards SRI, in general, and SRPI, in particular. Findings - The authors found that the market for SRPI is not growing as a result of an increased interest in SRPI as an emerging asset class, but rather as a consequence of a moderate growth in the property market. Some institutional investors find severe intransparencies in this emerging segment, while others do not perceive this new asset class as an attractive investment opportunity. Practical implications - The empirical study sheds light on the willingness of German institutional investors to invest in SRI with special reference to SRPI. Originality/value - The empirical study shows the willingness of institutional investors which already invested in SRI to invest in SRPI, as well as the reluctance of investors with no experience in SRI to invest in SRPI.