Abstract:

 Physical health, building performance and investment value are closely linked in real estate, yet their interaction is difficult to measure and remains only partially understood. This presentation draws on large-scale evidence to examine whether health-related building and neighbourhood characteristics are capitalised into investment outcomes and how investors can act on these insights. Drawing on evidence from US office markets, a recently published large-scale study is presented which investigated the role of healthy building certifications alongside external factors such as air quality, walkability and access to healthcare. Next, the discussion extends from assets to occupants, using evidence from EPIC-Norfolk and the UK Biobank to explore links between housing conditions and key health biomarkers. Particular attention is given to the shape, scale and thresholds of these relationships. Overall, the findings raise broader questions about how markets perceive, price and potentially misprice health in the built environment—and what this implies for investment strategy, policy, and urban development.

Short Bio: 

Franz Fuerst is Professor of Real Estate & Urban Economics at the University of Cambridge and Trinity Hall. He is also a J.M. Keynes Fellow and a Fellow of the Academy of Social Sciences. His research focuses on sustainable real estate, health and well-being in the built environment and spatial economics. He has authored award-winning studies on environmental and financial performance in international real estate markets. Franz has been a visiting professor/scholar in Melbourne, Munich and Tokyo and serves as Co-Editor of Spatial Economic Analysis. He leads multiple research projects and advises governments, businesses and industry associations.