Sustainability and Profitability: Success Story of Kora Green City

Kategora Communications Dept.

3 min read

The sustainable initiatives of our ‘Flex’ complex, Kora Green City, located in Vitoria-Gasteiz, have solidified its success, reflected in a net return of nearly 6% for its investors during its first year of activity in 2023

Sustainability also generates wealth. Projects like Kora Green City demonstrate that investments in sustainable real estate assets can be highly profitable over time for investors, while meeting strict sustainability standards. ⁣⁣

Our ‘Flex’ accommodation in the center of Vitoria stands out as one of the most efficient accommodations in the world. It has Passivhaus certification and uses renewable energy sources such as aerothermal, geothermal, and solar energy, which is obtained through the 140 m² of photovoltaic panels installed on its roof. As a result, Kora Green City ensures that 97% of its energy is clean. ⁣⁣

Additionally, it has managed to reduce its energy consumption by 76% and avoid the emission of 164 tons of CO2 into the atmosphere. These sustainable initiatives have solidified its success, reflected in a net return of almost 6% (fixed + variable) for its investors during its first year of activity. ⁣⁣

Kategora’s value proposition lies in offering guaranteed profitability from the first year in each project. The year 2023 was excellent from all perspectives:

It generated nearly a 6% annual return (fixed + variable) for its owners, exceeding expectations.
⁣⁣It has become the reference accommodation in the city. It is the highest-rated on Booking.com with an outstanding rating from customers, thanks to a value proposition that totally differentiates it from the rest. It offers cultural and gastronomic experiences to bring local life to those staying.
⁣⁣It has become a dynamizer of the urban ecosystem. It has created value for both visitors and residents of the city, serving as a space that has hosted various local and leisure proposals.
⁣⁣It is an official collaborator of public and private entities in Vitoria and internationally: official accommodation for the Ironman triathlon in Vitoria-Gasteiz; collaboration with Eneko Llanos, an international medalist triathlete from Vitoria; cultural relations with the Vitoria hospitality network, Gasteiz On, and the Diputación de Álava and the Vitoria City Hall, among others.
⁣⁣It has extended its sustainable origin to the building’s hotel management. Water refill points have been installed to avoid the use of single-use plastic bottles, the use of recycled materials and vegan products in amenities and print formats has been standardized, gastronomic experiences with Km 0 products have been promoted, and sustainable transportation use has been encouraged with bike parking and rental services, as well as electric vehicle chargers. ⁣⁣ ⁣⁣

All of this has resulted in excellent hotel management outcomes, with an occupancy rate of over 85% and 65% of sales through direct channels.

Long-Term Profitability of Sustainable Investments ⁣⁣

Investing in sustainable real estate assets, within the framework of sustainable asset investments, offers greater stability and resistance to market fluctuations over the long term, which can protect investors against financial risks and improve portfolio diversification.

⁣⁣The latest Deepki report on ‘European Pension Funds: Integrating ESG in Commercial Real Estate Investment’ reveals how the application of sustainability criteria increases the value of the real estate sector. Specifically, 79% of European pension funds predict better returns in the next five years. 64% stated that only between 21% and 30% of their commercial real estate assets have solid ESG credentials. ⁣⁣

Universal issues such as environmental care or combating climate change are increasingly resonating with investors who not only seek profitability and secure economic bets but also consider broader environmental factors. ⁣⁣

Among these sustainability criteria that enhance the value of real estate assets are energy efficiency, landscape design respecting the native species’ environment, and the adaptation of the resources used in construction to environmentally positive practices. ⁣⁣

The excellent investment results achieved by Kategora Real Estate in the development and construction of this sustainable Passivhaus building, Kora Green City, and the benefits obtained from its operational management during its first year of operation by its hotel brand, Kora Living, are a testament to what it means to invest in sustainable real estate assets. ⁣⁣

Want to learn more about the success model of all our projects? Write to us and discover how, at Kategora Real Estate, we can make your investment contribute in the best possible way to caring for the planet.