Dasos releases a fresh study on dynamically evolving wood-based real estate trends.

Over the past years, the European market for wood-based construction has been growing with accelerating pace amounting currently to about EUR 5 billion per year. With the growth at some 8% per annum, the market is projected to exceed EUR 10 billion per year by 2030.

There are some key drivers in the market with expected long-term effects. The trigger for the rapid development in the market has been in the technological breakthroughs of new engineered wood products (EWP), mostly CLT (cross laminated timber), LVL (laminated veneer lumber), and glulam which facilitate solid wood structures with strength comparable to steel and concrete and beyond.

The technology of CLT and LVL construction features efficiency gains resulting, for example, from modular solutions and reduction of tailor-made in situ work with shorter building time, and enhancing productivity with learning-by-doing.

Second, the versatility of the new engineered wood products aligns with flexible design and architecture with added value. The design versatility includes also a scope for frontier energy systems, including solar (eg wall and roof structures) and geothermal solutions.

Third, wood is often perceived as a superior material by people living or working in wooden houses. The experience of a user, as well as several studies, refer to possible health benefits of wood, looking at both measured and perceived indoor environment quality. There is also evidence of human health and well-being benefits based on wood’s biophilic properties.

Finally and vitally, wood-based construction represents an important instrument to improve the lowish climate change status of the construction sector, which accounted for 39% of global greenhouse gas (GHG) emissions in 2020.

For the whole report, please see Dasos Wood Building and Real Estate Impact Investment report 2021