How ESG Principles Are Transforming the Commercial Real Estate Market in Serbia

But what exactly does ESG mean in the context of commercial real estate? And how is it shaping supply, demand, and advertising?

 E – Environmental: Energy Efficiency and Sustainability as a Standard

Tenants and buyers are increasingly demanding buildings that are energy-efficient, with optimized heating, cooling, and ventilation systems, LED lighting, and recycling options.

Green buildings with certifications such as LEED or BREEAM not only use fewer resources but also:

attract serious, long-term tenants,

achieve higher rental rates,

offer lower operational costs.

In Serbia, demand for energy-efficient buildings is on the rise — both from foreign investors and local companies looking to modernize their operations.

 S – Social: Creating a Healthy and Productive Work Environment

More and more companies — especially in IT, finance, and creative industries — are seeking office spaces that offer:

natural lighting,

good acoustics,

clean air and ventilation,

relaxation and break zones,

access to bike paths and public transportation.

In this context, a building is no longer just a shell — it becomes a tool for productivity and employee well-being, which directly influences leasing decisions.

 G – Governance: Transparent and Responsible Property Management

Investors and tenants are increasingly evaluating how a property is managed:

Is maintenance regular and transparent?

Are investments being made in safety, digital infrastructure, and waste management?

Is the owner compliant with applicable laws and professional standards?

This is especially important for EU-based tenants who follow internal ESG guidelines.

How ESG Is Changing the Market

For property owners: ESG standards are becoming a competitive advantage. Upgrading buildings toward more sustainable models can increase value and attract higher-quality tenants.

For tenants: ESG-friendly buildings have become part of employer branding — especially for attracting young, educated professionals.

For investors: Properties with ESG potential are better positioned for evaluation and financing.

For real estate platforms and advertising: ESG features are becoming key selling points in listings. Terms like “green building,” “energy-efficient office,” or “LEED-certified” are increasingly used in search filters.

ESG is no longer a trend — it's the new standard in commercial real estate. Although Serbia is still catching up, all market participants — from developers and landlords to advertisers and fit-out companies — must acknowledge the growing importance of ESG to remain competitive.

Investing in sustainability, employee wellbeing, and transparent management today leads to higher value, stronger demand, and more secure revenue tomorrow — and now is the time to embrace the shift.