The Nordics and Baltics are at the forefront when it comes to electricity generation from renewable sources. In 2021, more than two thirds (68%) of all GWh generated in the region came from hydro, wind and solar. Carbon-emitting burning of fossil fuels – coal, oil and gas – amounted to three per cent.

Compare that to the entire continent of Europe, where (in 2020) the share between fossils (38%) and renewables (35%) was roughly even. Looking at global electricity generation (also 2020), we find that 61% of the world’s roughly 27 million GWh had fossil origins. Renewables, meanwhile, delivered 26%, or close to seven million GWh.

But the scene is changing. Thirty years ago, renewables meant hydropower. Wind and solar existed, but with negligible impact on electricity production. Even in Denmark, a global wind power pioneer, only about three per cent of electric power came from wind turbines in 1993.

Looking at the coming three decades, given that coal is being phased out and nuclear technology is facing significant reinvestment needs, Newsec’s prediction for the Nordics and Baltics is that renewable sources will continue growing in share and importance. While the growth capacity for hydro is limited due to various restrictions, wind and solar are estimated to almost triple in volume.

: IEA (Electricity production by source from 

series we publish charts which we find eye-opening, and provide context and commentary.

Where our electricity comes from | Newsec Charts

Despite rising geopolitical tensions, shifting trade patterns, and growing demographic pressures, the Nordic and Baltic real estate markets remain both resilient and future-ready. The latest Newsec Property Outlook examines how structural strengths, ranging from institutional stability and climate resilience to highly transparent investment environments, create a solid foundation for long-term growth. In an increasingly volatile world, the region stands out for its stability, clarity, and enduring investment appeal.

Newsec Property outlook - Autumn 2025

: Deputy CEO Newsec, Head of Advisory Sweden, Newsec; Multiple Chairman of the Board positions within Newsec Group


: Board member, Fastigo; Board member, ULI Charitable Trust


: MSc in Business Administration, IHM Business School; Diploma in Management, Henley Business School


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Sustainability is high on the property sector’s list of priorities, and no less pressing is cutting carbon emissions across commercial real estate. Simply put, buildings that fail to live up to certain standards risk becoming less valuable. What makes properties 

 is shifting from prime locations with sweeping views to net-zero emissions, promoting well-being and demonstrating resilience to climate change. In industry terms, the transition is often referred to as going from 

Studies cited by the World Economic Forum on the value of a 

 in real estate indicate that, today, certified buildings yield a rent premium of 6 per cent and a sales premium of almost 8 per cent.

Forward-thinking real estate owners who can make sense of this shift and carve out their own opportunities will likely have the most valuable portfolios in the future. Know-how of financing, transformation and management in a new and green economic climate, along with the ability to use data to gain deep market insights, will be crucial.

So, how brown is a building and how green does it need to become? Which initiatives should top the list and what requirements need to be met to obtain financing?

There is no doubt the field is yearning, to put it mildly, for expertise. Buildings are unique systems with different physical and technical conditions. Variables such as age, property type and construction all impact in very different ways. Accurate data is critical in reaching the correct decisions and setting priorities. Property owners need to start to map current performance by focusing (and usually enhancing) their data collection procedures. Skillful analysis of the insights derived from the data will start showing the economic implications of an investment. Knowing how to drive the change is another challenge, which involves setting priorities. There is rarely a shortage of activities to engage in, not all can feature on the change roadmap.

Considering that 80 per cent of existing properties will still be around in 2050, retrofitting is essential to meet the demand of upcoming regulations and achieving net-zero carbon emissions.

In the future, property owners that fail to fully comprehend and consider sustainability aspects, will find it hard to secure financing.

At an event co-hosted by Newsec in Almedalen, where Swedish politicians and business come together to find common ground, Katya Nolvall, Head of Sustainable Capital Markets at Swedbank, said there are currently two paths to green financing. One is green loans, which offer benefits if a building is already certified and can demonstrate top-class high energy performance. The other is sustainability-linked loans, where owners need to show that they have a defined sustainability roadmap and specified goals on a company level (some of which might include making properties greener) within a few years.

As the conversion towards a green real estate gains momentum, companies in the industry that fail to keep up, will become irrelevant. The next decade will be critical for the real estate industry – it needs to elevate its role in sustainable development to secure a zero-carbon future. Otherwise, property investors risk being left behind with declining property values.

Panel moderated by Daniela Grotenfelt, Group Sustainability Director at Newsec. Participants included Katya Nolvall, Head of Sustainable Capital Markets at Swedbank, Jenny Lindholm, CIO at Alecta Fastigheter and Christoffer Börjesson, Head of Digital Accelerator at Newsec. Photo: David Sahlberg.

Turning brown into green

Newsec Property Outlook reveals key trends shaping the Nordic and Baltic markets. Five years after the COVID-19 pandemic reshaped the global economy, the Nordic and Baltic real estate markets continue to evolve. Shifts in investment patterns, office space utilization, and geopolitical influences are redefining the industry. The latest edition of the Newsec Property Outlook provides an in-depth analysis of how these changes are impacting the region’s real estate sector and what lies ahead.

Newsec Property Outlook - Spring 2025

Reducing a sizeable climate footprint, curbing soaring electricity costs, dealing with potential power shortage, and managing energy efficiency and reporting requirements to obtain various certifications. These are some of the challenges facing real estate today.

But with tailor-made plans, property owners can reduce energy use and cost while reducing their climate impact. The same plans can also serve to make them more profitable and attractive to investors, and obtain green financing.

“We recognise that sustainability done right can be a profitable venture. Our work for various clients contributes to making them more climate friendly as well as energy and cost efficient, which has a positive impact on property values,” says Christoffer Börjesson, responsible for Digital Accelerator at Newsec.

What actions for clients can reduce their emissions?

“In large renovation projects, which are sometimes a necessary evil, it is key to work with new processes and suppliers – and work in collaboration with our customers - to reduce CO

 emissions as much as we can. In our daily operations, it is about working with green energy contracts. Their CO

 footprints are smaller. Managing energy projects allows us to develop a range of solutions for efficiency and optimisation. We measure, analyse and decrease energy consumption and that reduces the environmental footprint. We also work on solutions for locally produced energy.”

We measure, analyse and decrease energy consumption and that reduces the environmental footprint

How solidly can you claim that increased energy efficiency will also reduce your customers’ energy costs?

“If customers invest in the digital infrastructure we often advise them to, which makes them able to measure and analyse, we know better what usage drives cost. Using that intel we can create programs to reduce energy and cut costs that risk ballooning. And of course, energy costs have come up quite significantly in the past two years, which gives efficient use an even bigger savings potential.”

Are there ways of getting around soaring energy prices?

“With our clients, we look at it holistically. Who pays for the energy? How can property owners create business around their own production and storage, and in some cases also become a producer of energy for their tenants? All to reduce costs and create incentives for green energy. A large part of this is working closely with users and tenants, to ensure that they are also involved and contribute to reducing energy costs.”

What do customers stand to gain from more digitalised management?

“If a property owner has a digital portfolio, i.e. digital technology and infrastructure that measures how their property performs in water usage, heating, climate, ventilation, utilisation rates and so on, it provides insights that make it possible to work with the costs or usage patterns that have the greatest impact their goals. Digital technology in a property, along with a management plan, enables more troubleshooting to be done centrally. You can be clear about your priorities, and target measures where they will have the greatest effect.

“To cite an example:sensors in waste management, so to optimise the garbage collection frequency. Measuring and data also help reduce energy consumption – keeping the heating or cooling or lights off when no one needs any of that. In a digitally connected property, you can control things remotely, which further reduces admin and transport to and from the property. And time saved, of course, is cost saved. Efficient use of space and resources, less need for transport and a reduced carbon footprint are some of the benefits and gains that can be achieved through digitalised management.”

Digitalisation can be a significant investment, at least initially. What are property owners thinking about that?

“If you look at it the other way around – working with increased reporting, insights into cost drivers, energy use, being part of the energy system and influencing the indoor climate – how can property owners do that without digital technology? Of course, digitalisation requires investments, but that doesn’t necessarily mean just high costs. More data-driven properties enable insights that aid prioritisation. Then you can address the things that have the greatest impact on costs and tenant experience, and quickly see returns on those investments.”

Digitalising to become more sustainable - a few key points

 – agree on a strategy and work from an overall company perspective.

 – install technical measurement infrastructure in the properties so that you measure correctly based on your plan and targets.

have clear planning and measurement instructions for the property, so that you know which measuring points and meters can be checked by the appropriate authorities, and also for various insights, reporting or follow-up.

 – Link technical measurement data with economic data, to create an overview of what underpins the largest costs and how these costs will develop over time.

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Newsec Property outlook - Autumn 2025

Where our electricity comes from | Newsec Charts

“We can see a clear trend that the Nordics and Baltics are becoming relatively more attractive to international real estate investors. Given the current geopolitical uncertainty, this trend is likely to continue,” says Max Barclay, CEO of Newsec.

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