Sustainability Indicators for Real Estate Investment Assessment: A Systematic Review of MCDM-Based Studies

Abstract

The real estate sector is responsible for about 40 percent of global energy use and has increasing pressure to show that investments into the industry are sustainable by way of using multi-dimensional assessment frameworks. As part of mandatory ESG (environmental, social, and governance) disclosure regulations for corporate entities, specifically the Corporate Sustainability Reporting Directive (CSRD, 2024) and European Sustainability Reporting Standards (ESRS), companies are being required to provide a structured set of evidence-based sustainability indicator sets to meet regulatory obligations. MCDM (multi-criteria decision-making) methodologies are the predominant analytical methodology used to apply these criteria to appraisals of real estate investment opportunities. However, there does not exist at present a systemically developed, protocol-based compilation of the indicators reported in the existing literature as it relates to real estate investment. This article reports on a systematic review of 128 peer-reviewed articles published from January 2017 to December 2025, retrieved from Scopus, Web of Science, and Google Scholar. All extracted data was subject to a process of standardization and harmonization, which resulted in the identification of 46 key sustainability indicators across four dimensions: Environmental (n = 15; 32.6%); Economic (n = 13; 28.3%); Social (n = 11; 23.9%); and Technological (n = 7; 15.2%). In addition, three additional indicators were identified that correspond to mandatory CSRD and ESRS reporting requirements. In relation to environmental considerations, Greenhouse Gas emissions were found to be referenced in 95.3% of studies while Employment Creation was mentioned in 92.2% of studies. Analytical Hierarchy Process (AHP) was noted to be the most frequently utilized methodology (27.3%), while Stepwise Weight Assessment Ratio Analysis (SWARA) grew to become the second-most utilized methodology (21.1%) from 2024 onwards. There were no studies focused on Western Balkan or equivalent transitional economy regions. The above-identified 49-indicator framework will serve as a basis for providing an up-to-date evidence-based framework for assessing sustainability within the context of real estate investment.

Keywords: sustainable investment; sustainability indicators; real estate; MCDM; PRISMA 2020; ESG; transition economies

DOI: 10.7176/JESD/17-2-06

Publication date: March 28^th 2026