Sustainable financing supports rebound in Europe's CRE market

After the market correction of 2023, the European commercial real estate (CRE) sector saw a steady recovery in 2025. Investor confidence strengthened as valuations stabilised and liquidity returned.

By mid-2025, competition for prime assets had intensified again. The strongest demand focused on buildings with high energy efficiency and clear sustainability credentials. Secondary assets, meanwhile, faced slower demand and required more capital to reposition.

Against this backdrop, sustainability has moved from compliance requirement to performance driver. Across ING’s markets, clients increasingly prioritise energy efficiency, climate resilience and long-term decarbonisation. The shift is reinforced by regulation such as the Opens in a new tabCorporate Sustainability Reporting Directive (CSRD) and the Opens in a new tabEnergy Performance of Buildings Directive (EPBD), as well as growing investor demand for assets that retain value over time.

“Supporting clients in their transition is key to ensure value preservation for investors. Climate-related risks are financial risks, which can be reduced by a strong and science-based resilience and transition strategy” said Alexander Piur, sector lead sustainable solutions group – real estate & infrastructure.

ING’s 2025 activity reflects the leading role sustainability plays in our strategy, with Opens in a new tab50 green transactions completed by year-end. The transformation financing of 40 Holborn Viaduct in London reflects a broader industry trend: high‑quality refurbishments of well‑located offices are among the lowest‑risk deals in today’s market, supported by strong pre‑leasing and enduring tenant demand. Likewise, ING’s €815 million refinancing of a large residential portfolio in Spain and Portugal owned by ARES Fund V, its €500 million green bond for NEPI Rockcastle in the Netherlands, and a major purpose-built student accommodation financing in Italy highlight how sustainable, future‑proof portfolios are attracting institutional capital.

These transactions point towards a market gaining traction around energy performance and climate resilience. Investors are seeking assets that can withstand structural shifts.  ING will continue to support clients across Europe as the CRE landscape transitions toward greener, more resilient portfolios.

As Sylvia Brandsma, ING’s global head of real estate and infrastructure, notes, the bank’s biggest impact comes from its focus on partnering with clients to upgrade their brown assets: “When we look at how we can ‘grow the difference’ for clients and society in infrastructural terms, transition finance is a hugely impactful lever. This is where we partner with clients and look together at how we can make their assets or projects greener, drawing on our differentiated offering that includes our deep sector expertise.”

Commercial real estate is a sector in scope of our Terra approach, through which we manage the most carbon-intensive parts of our portfolio in line with governmental climate goals. Our CRE strategy focuses on helping clients transition to low-carbon buildings by prioritising assets with strong energy performance, enabling upgrades that improve efficiency, and integrating sustainability into financing solutions.

Performance is measured by the kilograms of greenhouse gas emissions associated with each square metre of a building or asset. We strive for a target of reduction of 56 percent by 2030, of which 8 percent has been achieved to date, and aim to reduce a further 48 percent.

You can find more information in our Opens in a new tabOpens a pdf2025 Annual Report.

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on Opens in a new tabour climate approach. This document discusses one or more specific transactions and/or contains general statements about ING’s climate approach. The approach and criteria referred to in this message are intended to be applied in accordance with applicable law. Due to the fact that there may be different or even conflicting laws, the approach, criteria or the application thereof, could be different across jurisdiction.