European property investors are planning significant increases in spending on smart building technology as they seek faster, more cost-effective ways to reduce energy consumption and meet sustainability targets, according to new research from re:sustain.
The study, which surveyed 200 institutional real estate asset managers across the UK, Germany, France, the Netherlands, Spain and Italy, representing a combined €296 billion in assets under management, found that 69% intend to increase investment in energy management technologies over the next three years.
The findings highlight the growing role of digital optimisation as organisations look to improve building performance without the cost and disruption associated with major retrofit programmes.
Nearly three-quarters (73%) of respondents said technology delivers faster energy efficiency improvements than upgrading or retrofitting buildings, while 55% believe it is a more cost-effective approach. Around 61% also cited lower levels of disruption to building operations, and half said technology makes it easier to secure occupier support for energy-saving initiatives.
When asked which investments would have the greatest impact, 73% identified technologies capable of remotely optimising building systems to reduce energy consumption. This was followed by investment in new Building Management Systems (60%), ahead of replacing major plant such as HVAC and lighting systems (54%). Just 14% believed changes in occupant behaviour alone would deliver the greatest improvements.
Overall, almost nine in ten (89%) respondents said technology is now an important component of their energy management strategy.
However, the research suggests there remains considerable scope for wider adoption. While 51% of organisations have deployed energy technologies in newer buildings, only 18% have done so across older properties. Just 3% reported having smart energy technologies installed throughout their entire portfolio.
Current applications extend well beyond simple energy monitoring. Around 69% of respondents use technology to manage buildings remotely, while 64% monitor energy consumption in real time. A further 30% use digital platforms to model building performance and identify future energy-saving opportunities.
As pressure grows to reduce operational carbon emissions while controlling costs, the findings suggest energy managers are increasingly viewing intelligent building technologies, remote optimisation and data-driven energy management as critical tools for delivering measurable efficiency gains across both new and existing estates.
