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By João Richard Costa, Chief Commercial Officer, Ombria Algarve
Society’s growing awareness of and commitment to a greener way of living creates ripple behavioural effects on consumers but also on investors, who favour eco-friendly or sustainable assets to future-proof their portfolios. Real estate, therefore, remains a key investment vehicle for many. In a recent market-trends report, published in the fourth quarter of 2024, Savills projected global real-estate investment to rise by 7 percent to US$952 billion in 2025.
Is there really more demand for sustainable assets and properties?
Some of the world’s leading institutes conduct rigorous research to determine the impact sustainability is having on investment strategies. In their “Sustainable Signals” report, published in 2024, the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Wealth Management found that 57 percent of individual investors believed their interest in sustainable investments had increased in the previous two years, while more than 70 percent agreed that strong ESG (environmental, social and governance) practices could lead to higher returns.
Findings from property-services company JLL, published in the second half of 2024, confirmed that properties with green credentials generated more occupier demand and achieved greater rental premiums globally.
This argument is further supported by the latest annual “Property Investor Report” by Handelsbanken (based on exclusive insights from property investors in the United Kingdom with an average of 35 properties each), which claimed that the average value of annual budgets set aside for green investments across commercial and residential portfolios rose from £106,222 in 2023 to £128,000 in 2024—an increase of more than 20 percent. Buy-to-let investors, who are facing challenges such as tax changes, are especially keen to keep their property portfolios relevant to attract tenants and increase their returns on investment (ROIs).
Here at luxury, sustainable development Ombria Algarve in Portugal, we have seen drastic changes in buyer priorities over the past few years as consumers have become increasingly aware of the environmental challenges our planet is facing. As such, the majority of our buyers put greater emphasis on sustainability, which results in a number of positive side effects.
First and foremost, properties with good eco-credentials are a better choice for the world’s environmental health. Secondly, with the steady increase of eco-conscious travellers, second-home owners are more likely to attract holidaymakers to their abodes and therefore boost their rental incomes. Thirdly, the running costs are relatively lower. For example, Ombria incorporates energy-saving lights as well as solar and geothermal energy.
Oriole Village at Ombria Resort
How lenders are adapting
The introduction of green mortgages continues to play an important role in the shift towards sustainable homes. In the UK, the concept of green mortgages was initially introduced in 2017 and formed part of the government’s Clean Growth Strategy.
As readers of International Banker magazine will know, green mortgages give borrowers preferential terms, such as lower interest rates or increased loan amounts, if the funds are utilised to invest in a new green building or add green features to an existing one.
After the initial concept was launched, the number of green-mortgage products in the UK grew substantially from 4 products in 2019 to more than 60 in 2024. But it’s not only the UK that has seen growth in this sector. Green mortgages have also been made available in countries such as Portugal, Germany, Finland, France, Ireland and the Netherlands, to name just a few.
Oriole Village at Ombria Resort
How developers are reacting
Whilst the world’s property markets are as diverse as can be, the global objective for a greener future has triggered a shift towards a common goal: to put the creation and evolution of sustainable homes at the forefront of construction.
In Portugal, our relationship with eco-friendly construction methods goes back centuries, as traditional homes, made from local materials, already displayed an understanding and respect for the environment. Whilst the use of local materials remains a focus, modern technology has allowed architects to create a new generation of sustainable homes.
It is important to remember that sustainable properties go beyond financial gains. At Ombria Algarve, we pride ourselves on supporting the local flora and fauna as well as the well-being of our buyers and residents. Our properties are convincing with their sustainable features, but they are completed with amenities that support a balanced lifestyle that is in harmony with nature.
Ombria Algarve is situated in a tranquil countryside setting, two kilometres from one of the Algarve’s largest nature reserves and seven kilometres north of the market town of Loulé, with Faro Airport and the beaches a mere 25-minute drive away.
In October 2024, the resort celebrated the official opening of its 5-star hotel, Viceroy at Ombria Algarve, giving guests and property owners access to 76 beautifully appointed hotel rooms, 65 branded residences and a selection of onsite amenities. This includes its 18-hole golf course, built according to the highest standards of environmental sustainability and certified by the GEO Foundation for Sustainable Golf (a non-profit organisation that is dedicated to sustainable golf) in recognition of its environmental and social excellence.
Oriole Village at Ombria Resort
But Ombria Algarve’s dedication to the health of the local land and ecosystem goes further. A plant nursery will support the development and growth of local species and the preservation of the existing flora and fauna, whilst more than 700 oak trees have been planted and 1,800 linear metres of river habitat restored.
To ensure our commitment to sustainability is incorporated into Ombria’s architecture, we partnered with WATG (Wimberly, Allison, Tong & Goo) for the landscape architecture as well as WATG’s interior-design firm Wimberly Interiors and award-winning Portuguese architecture firm Promontorio. True to our slogan, “Carved by Nature”, Ombria’s design features bioclimatic architecture, local materials and geothermal energy whilst focusing on low building density to integrate the properties into nature perfectly.
João Perloiro, founding partner of Promontorio, said, “Bioclimatic architecture is the way of design taking advantage of the local climate and resources. The aim is to ensure thermal comfort by using the environmental local conditions, while minimising energy consumption and environmental impact.
“There has been a growing emphasis on sustainable building practices in Portugal, aligned with the country’s commitment to EU sustainability goals. Ombria’s holistic approach and adherence to high sustainability standards make it a notable example of bioclimatic architecture at a larger scale. It encourages further development in the region and contributes to a shift towards sustainable building practices.”
With only a few of the 65 Viceroy Residences available for sale, investors have already begun reserving homes at Oriole Village—a collection of 83 villas, townhouses and apartments that also form part of Ombria’s first building phase and will also be operated by Viceroy Hotels & Resorts. Ownership at Viceroy Residences and Oriole Village both come with various advantages and discounts on the golf course as well as at the hotel facilities.
Alcedo Villas
The remaining Viceroy Residences start from €782,000 for a spacious, fully-furnished one-bed apartment with full access to all the hotel facilities and amenities. Properties at Oriole Village will be launching during 2025 and buyers who are seeking a more bespoke property, can also discover Alcedo Villas – a collection of 12 modern hilltop villas with stunning views of the golf course, featuring tailorable bioclimatic architecture to give owners the chance to create their one-of-a-kind dream home.
ABOUT THE AUTHOR
João Richard Costa is the Chief Commercial Officer of Ombria Algarve in Portugal. With degrees in business and marketing, as well as more than two decades of experience representing some of the finest international real-estate projects—both residential and mixed-use—João has established himself as a trusted expert in this field.
