78.3% of Spaniards are willing to pay more for more environmentally friendly housing.

The Spanish real estate market is one of the oldest in Europe and one of the largest, with 26 million residential properties. Moreover, 80% of the buildings and homes in it are considered "inefficient" (energy efficiency ratings E, F, or G), according to data from the Institute for Diversification and Saving of Energy (IDAE), and therefore consume a large amount of energy, which is set to change by law by 2033. It is clear that transforming the real estate sector, which is a key element in achieving the decarbonization goals set out in the European Green Deal, poses a particularly significant challenge for Spain.

Because 60% of buildings were constructed without thermal insulation, which accounts for 40% of their energy consumption, as they were built before the Technical Building Code came into effect (in 2006). Therefore, the government anticipates that to meet European goals, Spain must renovate 1.2 million residential homes by 2030 and reach 7 million by 2050, as well as focus on the construction of new sustainable buildings. Construction in Spain accounts for 30.1% of final energy consumption and 25.1% of carbon dioxide emissions, according to CBCe (the Spanish Green Building Council).

Before this situation, many developers are joining this necessary change, betting on a more efficient production model and on sustainable and customized housing that meets current demands, as 6 out of 10 buyers already consider sustainability criteria when purchasing a home, and even 78.3% are willing to pay more for more sustainable housing, according to the I Housing and Sustainability Experience Review conducted by UCI (Property Credit Union).

In this regard, small and medium-sized enterprises like Padi and VIVE have a great opportunity ahead of them, as they possess greater flexibility to offer sustainable and customized housing, which not only leads to environmental benefits but also results in significant savings on property maintenance for the end buyer.

Companies wishing to join this transformation must invest in more sustainable materials, encourage recycling, obtain energy certificates...

This type of predictive assistance strengthens small and medium-sized enterprises, enhances their future competitiveness, and helps them stand out and secure a place in the market. However, relying on a sustainable model also implies significant investments, both from the buyer who wants to renovate their home and from the developer.

Nevertheless, there are solutions that contribute to achieving this goal. However, "eight out of ten Spaniards are unaware that there are mechanisms to mitigate the cost of these actions, such as the Next Generation EU Funds (83.6%), the income tax deduction for reconstruction (90.7%), or state and regional subsidies (86.7%)," according to the Review.

Moreover, it is important for companies to know that a focus on sustainability can help them gain access to financing and that there are specific solutions aimed at promoting this transformation. Yasmina Folch, a real estate manager at BBVA, has been advising clients and companies in the construction sector for many years to help them realize their commitment to sustainability.

"At BBVA, we not only finance sustainable projects, but we also provide consulting and funding for companies that want to take this path," she emphasizes.

In fact, the institution that has a specialized team of experts in this field operates on four main pillars of change for this sector: energy efficiency, construction and renovation, electric mobility, and solar self-consumption of energy.

BBVA's financial solutions to assist real estate companies in their sustainable transition:

• For real estate companies:
• Promotion of green real estate in debts, guarantees, or confirmations
• Promotion for social housing
• Debts for reconstruction and property ownership
• Electromobility, BBVA Autorenting
• Mobile equipment: leasing or rental
• Corporate financing that brings together various initiatives to reduce the carbon footprint.

For your employees:

• Sustainable development insurance and agreements for employees

For your clients:

• Subrogation for buyers
• Funding for reconstruction in collaboration with reconstruction agents

When launching programs to promote sustainable housing, BBVA offers developers solutions such as loans, guarantees, or confirmations, as well as others aimed, for example, at solar self-consumption of energy, encouraging sustainable mobility, or investments to reduce their carbon footprint, among other things.

In addition, for private clients and home buyers, it also offers specialized financial solutions for home renovations under the guidance of renovation agents, as well as comprehensive consulting to ensure that a lack of knowledge no longer becomes an obstacle to joining this necessary change.