Policy Measures for Reducing Emissions in the Real Estate Sector – A Review

Mohd Azlan Ab. Jalil, Noorsidi Aizuddin Mat Noor, Nurul Saadah Lokman and Farhana Diana Deris
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Mohd Azlan Ab. Jalil: Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor, Malaysia
Noorsidi Aizuddin Mat Noor: Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor, Malaysia Centre for Real Estate Studies (UTM CRES), Institute for Smart Infrastructure and Innovative Construction (ISIIC), Universiti Teknologi Malaysia, Johor, Malaysia Mass Appraisal, Housing and Planning Research Group, Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor, Malaysia
Nurul Saadah Lokman: Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor, Malaysia
Farhana Diana Deris: Centre for Real Estate Studies (UTM CRES), Institute for Smart Infrastructure and Innovative Construction (ISIIC), Universiti Teknologi Malaysia, Johor, Malaysia Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 2831-2846

Abstract: Drawing on empirical work, this study explores how policy can shift these emissions, two sectors responsible for 40% of original CO2 emissions globally. The research recognises the dual impacts of operational and embodied emissions, assessing policies in the US, UK, Germany, and China through the use of a comparative case study approach. The methodologies include national and international frameworks for content analysis. Key findings suggest a blended approach of regulatory and market-based instruments such as carbon pricing, green financing, and building codes addressing the barriers of high initial costs and fragmented regulations. Then, examine best practices with Germany’s energy audits and green financing, the UK’s stringent efficiency standards, and China’s renewable energy mandates. Germany leads with 73% green standards adoption, while China’s 35% real estate emissions highlight opportunities for sustainability investments globally. Progress is noted in Malaysia with some urban areas, but other rural areas lag behind due to limited resources and awareness. The study concludes that policies aimed at decarbonising real estate should be conducted with a holistic and contextual approach focused on sustainability, affordability, and equity. The implications are broader aligning real estate practices with global climate goals, encouraging the growth of green buildings, reducing climate risk, and more. Future research would better explore synergies, the integration of mitigation and adaptation policies, and financing challenges in developing regions. This study provides policymakers with actionable insights into the design of effective strategies, developers with cost-efficient green technologies, and the global community with collective progress towards a sustainable built environment.

Date: 2025
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