SUSTAINABILITY AND PROFITABILITY: HOW REAL ESTATE DEVELOPERS BALANCE ENVIRONMENTAL IMPACT AND PROFIT

Abstract

This study examines the relationship between sustainability and profitability in the Brazilian real estate sector from a decision-oriented perspective, analyzing how developers incorporate environmental and governance practices in response to return expectations, risk management, and access to capital. Using a qualitative approach based on bibliographic and documentary analysis, the research investigates corporate strategies, consumer behavior, and the requirements imposed by investors, financial institutions, and regulatory bodies. The findings indicate that although sustainable developments involve higher upfront costs, these investments tend to be offset in the medium and long term through higher asset appreciation, lower operating expenses, reduced regulatory risk, and improved financing conditions. Environmental certifications and sustainability reports are identified as market signaling mechanisms that influence risk perception, asset attractiveness, and credit access. The analysis also reveals regional disparities, with sustainable initiatives concentrated in major urban centers, reflecting differences in demand profiles, capital availability, and financing structures. Consumer valuation of environmental attributes varies across income segments, directly affecting pricing, absorption rates, and asset liquidity. The study concludes that sustainability, when integrated into financial planning, should be understood not as a constraint on profitability but as a strategic factor in competitiveness and risk-adjusted performance within an increasingly capital-driven real estate market.