Green Buildings in the Baltics: Profit, Not Cost

Not every building painted moss green and surrounded by lush trees qualifies as “green.” In recent years, sustainable real estate development has advanced significantly in the Baltic countries. The result? Hopefully a future where homes and workplaces are truly energy-efficient, environmentally friendly, and comfortable.

Sustainability in real estate is no longer a niche belief – it already translates into higher returns. For example, Baltic Horizon Fund, which invests in commercial real estate across the Baltics, has committed to a portfolio of 100% BREEAM-certified buildings starting in 2024. These buildings meet high sustainability standards, offering long-term value and efficiency. SEB Bank’s real estate division also emphasizes that sustainable development should be seen as a source of profit rather than an expense.

Let’s explore how green buildings benefit various stakeholders and see how Estmak Capital has contributed to the sustainable growth of the Baltic real estate sector.

What Is Green Real Estate?

Green real estate usually refers to buildings designed to minimize environmental impact while enhancing occupants’ quality of life. Core principles include energy efficiency, sustainable building materials, a smaller ecological footprint, and healthier indoor environments.

Green buildings typically consume less water and energy, generate less waste, and use smart technologies to optimize operations – for example, harnessing solar energy, maximizing natural light, and adapting to day-night cycles. Location also matters. Easy access to public transportation and infrastructure, like bike lanes, can significantly reduce the indirect environmental impact.

Green real estate benefits both the planet and property owners. Lower operational costs and a good reputation attract tenants, investors, and financial institutions. Plus, sustainable properties tend to achieve higher resale values.

According to SEB’s real estate division, sustainable properties carry lower risks and maintain higher long-term value.

The Green Wave in the Baltics

In Estonia, Latvia, and Lithuania, sustainable construction is no longer just a trend – it has rather become the mainstream. Driven by EU regulations, the sector increasingly focuses on environmental responsibility, with many properties exceeding legal requirements.

In Tallinn, notable examples of highly energy-efficient smart buildings include the LEED Gold-worthy Alma Tomingas Building in Ülemiste City and the Novotel Living apartment hotel developed by Estmak Capital in the city center. Another standout is the new zero-energy Environmental House, built from mass timber.

In Riga, the BREEAM-certified Versum Business Center stands out. Offering nearly 15,000 square meters of office-showroom-warehouse spaces, the complex is built from eco-friendly materials and features energy-saving solutions such as heat recovery ventilation and solar panels. Developed by Estmak Capital, Versum Business Center was also nominated at the prestigious BREL Awards.

Lithuania’s green commercial real estate sector is also experiencing growth. Notable green properties include the LEED Gold-certified Continental Automotive plant in Kaunas and the Sirin Park Gariunai logistics park in Vilnius. Spanning 68,000 square meters, Sirin Park has an A++ energy class and BREEAM certification, exemplifying energy efficiency.

What Does the Future Hold?

Real estate is among the largest contributors to energy consumption and carbon emissions, making its role in achieving the EU’s sustainability goals crucial. Governments in all three Baltic countries support green development through subsidies and tax incentives, although slightly differently.

Regardless of future government support, the most important factor will probably remain the genuine desire to build sustainably. But achieving this requires dedicated collaboration among developers, owners, architects, and engineers.

The near future holds promising technological advancements: smarter building materials, zero- and plus-energy buildings, AI-driven technology, energy-harvesting facades and roofs, advanced building management systems, and solutions that promote healthier indoor environments.

However, these innovations require substantial investments and specialized training. Environmental regulations are probably becoming more stringent, emphasizing the need for continuous innovation even more. Success is expected to favour companies that balance technological advancements with economic viability while delivering environmentally friendly and healthy environments.

Ready for the Challenge

Green real estate is not a passing trend but is rather becoming the standard in the Baltics, offering better opportunities for investors, businesses, and people living or working in these buildings. 

Drawing on experience with several innovative projects – Estmak Capital is ready for the future of green real estate. Our dedicated team continuously seeks new challenges, follows advancements in construction technology, and embraces bold thinking.

Explore our sustainable projects, both present and future, on the Project’s page.