A far larger number of urban European buildings should have their façades refurbished in order to increase their value and increase sustainability within real estate markets, according to Vincent Nobel, head of asset based lending at Federated Hermes.

In a paper called Beyond the façade, Nobel says the central locations in European cities are filled with large numbers of ugly buildings, which struggle to meet current standards for energy efficiency or attract tenants willing to pay a decent rent. “Ugly does not, however, mean structurally obsolete,” he writes. “The ugliest buildings can prove attractive to an investor because they can be cheap to buy, and, as a result, have significant potential for commercially viable refurbishment.”

As a result, he argues, an untapped opportunity exists to generate positive impact by transforming buildings that are “structurally sound but visually unlovable” and make them fit for the 21st century.

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