EPRA Research Webinar Series 2025 - ''Disentangling Social Impact Ambitions''

Disentangling Social Impact Ambitions: New Perspectives on the Return-Impact Tradeoff by Dirk Brounen and Martijn Stroom, Maastricht University 📑PAPER SUMMARY: The evolution of impact investing in real estate has accelerated since 2015, spurred by global initiatives like the COP21 Paris Agreement and the UN’s Sustainable Development Goals. Real estate plays a crucial role in sustainability and affordability, prompting investors to increasingly balance financial performance with sustainable practices. This study explores the evolving ambitions of real estate investors to balance financial returns with their social impact. Surveying financial and sustainability managers across the European real estate sector, particularly from the EPRA network, the research highlights that while environmental concerns dominate sustainability priorities, investors are increasingly willing to sacrifice financial returns for social impact, especially in enhancing housing affordability. Preliminary results reveal that investors are willing to forgo an average of 123 basis points of expected returns to improve tenant affordability. These preferences are notably higher among those with a long-term horizon and who perceive sustainability certifications to be aligned with impact goals. The paper offers insights into how different stakeholders perceive, prioritize, and require social impact alongside financial returns.