Investors across Europe are planning significant activity in smart building technology as they look for faster, more cost-effective ways to improve energy efficiency and reduce carbon emissions, according to new research from Re:sustain.
The study of 200 European institutional real estate asset managers, collectively responsible for €296 billion of assets under management, found that 69% expect to increase spending on energy management technology over the next three years.
The findings suggest digital optimisation is becoming a preferred alternative to costly building upgrades. Nearly three-quarters (73%) of respondents said technology delivers faster energy efficiency improvements than traditional retrofit programmes, while 55% believe it is more cost-effective.
The research also found that 61% value the reduced operational disruption associated with technology-led improvements, compared with major refurbishment projects, and half said digital solutions make it easier to gain tenant support for sustainability initiatives.
Remote energy optimisation emerged as the highest priority investment area, with 73% identifying technology that can monitor and optimise building performance remotely as the most impactful way to reduce energy consumption. This was followed by investment in new Building Management Systems (60%), ahead of replacing systems such as HVAC and lighting (54%).
Overall, 89% of respondents said technology now plays an important role in delivering their energy management strategies.
Despite this growing confidence, adoption remains uneven across portfolios. While over half (51%) have deployed energy technologies in newer buildings, only 18% have introduced similar solutions across older properties. Just 3% said smart energy technologies are currently deployed throughout their entire estate.
Many organisations are already using digital platforms to improve operational performance. Around 69% use technology to manage buildings remotely, while 64% monitor energy consumption through digital systems. A further 30% use analytics to model building performance and identify future efficiency opportunities.
As organisations continue to balance decarbonisation targets with budget pressures, the research suggests facilities and estates teams are increasingly looking to smart technologies, real-time data and remote optimisation tools to improve energy performance, extend asset life and support long-term sustainability objectives.
Photo by Aaron Gilmore on Unsplash
