Social impact investing can apply to all real estate and become best practice over time

All real estate investment and development has the potential to deliver social impact, according to a new report by the Urban Land Institute (ULI) in partnership with global law firm DLA Piper.

The global report, Social Impact: Investing with purpose to protect and enhance returns, concludes that, often with relatively small adjustments to strategy, real estate can deliver market-rate returns, while at the same time intentionally deliver social benefits that would not have otherwise occurred to underserved people, communities and locations. A social impact approach also can offer specific risk management benefits that support returns.

David Faulkner, president of ULI Asia Pacific, commented, “Social impact investing often offers compelling opportunity to institutional investors in contributing meaningful solutions to major societal challenges and finding new opportunities with lucrative risk-adjusted yields. It is crucial for the real estate sector to take s