Decarbonization strategy and green investment in the real estate: Toward a new sustainable paradigm

The transformation of the real estate sector towards net-zero emissions is a fundamental transition that requires a need for alignment between the performance of the physical asset and the use of environmental, social, and governance-linked capital. Green investment strategies can be an important solution to ensure the liquidity of assets; however, the existing gap between the practical implementation and the real estate sector decarbonization agenda has been widely observed. The existing studies in the field have often focused on the financial appraisal, technical, and regulatory governance separately, which limits a comprehensive understanding of the whole picture. This study, therefore, aims to narrow down the research-practice gap by methodically investigating the link between green investment and decarbonization by adopting a structured interpretive synthesis approach through a PRISMA-informed review of 74 related articles. The review identified five clusters of drivers (headed by green premium) and eight clusters of structural barriers, starting from the split-incentive problem to green investment. The results confirmed that the sustainable business model is achieved through five major transition pathways: technological adoption, deep retrofit, stakeholder engagement, life-cycle carbon management, and circular economy. In addition, 11 policy initiatives ranging from mandatory performance standards to sustainable public procurement were identified and synthesized to address the long-standing market failures. The findings of this research, when structured in a unified decision-making framework, would assist real estate professionals and policymakers in effectively aligning capital use and physical resilience for long-term value capture in the decarbonized economy.