Prepared ahead of UKREiiF 2025 by Damian Robinson – Advisory Commercial Director
A generational shift is redefining how capital flows.
As Gen Z—and soon Gen Alpha—begin to inherit wealth, build savings, and actively shape financial markets, their values are already starting to influence investment strategy. This signals a powerful new dynamic for property developers and investors: future funding will come with expectations of impact, transparency, and purpose.
But this isn’t ESG as we’ve known it.
Following a wave of political pushback, greenwashing scandals, and tightening regulation, ESG has entered a period of reckoning. While some institutions are pulling back, younger generations are doubling down on their own terms.
With UKREiiF 2025 on the horizon, one question is rising to the surface: Are our developments aligned with the expectations of tomorrow’s investors?
ESG fatigue meets generational demand
ESG—Environmental, Social, and Governance investing—once topped the global agenda. But it’s become politically and commercially contested over the past few years.
- In the US, several Republican-led states have passed anti-ESG legislation, accusing fund managers of prioritising ideology over return.
- In Europe, regulators are tightening ESG definitions, demanding stronger data and cracking down on greenwashing.
- And in the UK, government rhetoric has become more cautious. Senior politicians are calling for “balance” and even abandoning ESG policy, warning against overburdening developers with climate-related reporting that may stifle growth.
These shifts have caused some investors to back away from ESG-labelled funds. But while the acronym may be under strain, the values behind it—climate action, equity, good governance—remain deeply relevant, especially for Gen Z and Alpha.
By 2030, Gen Z’s global income is expected to quadruple to $36 trillion—with much of that wealth flowing into platforms that offer transparency, ethical alignment, and social value(Bank of America Institute – Gen Z: The New Economic Powerhouse 2023 Report). In the UK alone, an estimated £7 trillion will pass between generations by 2050 (Vanguard UK – Navigating the Great Wealth Transfer 2023 Insight).
This isn’t the end of ESG—it’s a reset. And the next wave of investors wants measurable, not performative, action.
Investing as identity: From metrics to meaning
For younger generations, investment is more than a financial decision, it’s a moral one. Where their money goes reflects who they are and what they stand for.
This changes the game for property development:
- Projects must show tangible, local benefits, from affordable homes and green spaces to social equity and resilience.
- ESG reporting must evolve from static PDFs to dynamic, transparent impact dashboards.
- Developers will be judged not just on ROI—but on the narrative behind the numbers.
For future investors, the developments that stand out are those that do more than deliver a return—they contribute to thriving, resilient places. Backing these projects becomes a way to shape the world they want to live in, not just profit from.
From institutions to individuals: The rise of micro-investing
Where older generations relied on pension funds and institutional vehicles, Gen Z and Alpha are embracing platforms that offer direct, fractional investment. Through Seedrs, Abundance, and community REITs, they’re funding everything from urban farms to co-living spaces.
Their motivations combine ethical return with community empowerment. They want:
- Ownership, not just passive exposure;
- Visibility, not opacity;
- And often, voice in the process.
This opens new capital streams for developers—but only if they’re prepared to co-design, co-communicate, and co-deliver.
Building for a new way of living
These generations are investing not just in property but in how people live.
They favour:
- They favour 15-minute neighbourhoods and placemaking approaches that integrate homes, work, and public life into connected, walkable communities.;
- Mixed-use, vibrant environments that connect home, work, and leisure;
- Designs that support mental wellbeing, inclusion, and climate resilience.
This marks a shift from car-centric, mono-use developments to more connected, people-first urban design.
The days when placemaking was seen as a “nice to have” are over. Creating liveable, connected, and inclusive environments is simply the baseline for this new generation. Anything less risks being overlooked—or actively rejected.
Digital trust is the new due diligence
Trust is no longer built through credentials alone. Gen Z and Alpha demand radical transparency—delivered digitally, in real time.
They expect:
- Impact dashboards with verifiable metrics;
- Immersive tools like AR walkthroughs and community feedback portals;
- Blockchain-backed or open-source proof of claims.
A glossy brochure won’t win them over. They want interactive, ongoing visibility—not just at launch but across a development’s life cycle.
What to watch for at UKREiiF 2025
To stay ahead of these shifts, watch out for these emerging signals:
1. ESG Reinvention
Look for how investors and developers are moving beyond compliance into performance-led ESG, backed by auditable data.
2. Generational Wealth Trends
Track sessions exploring the £7 trillion UK wealth transfer and how it may influence fund flows into ethical and impact-driven assets.
3. Micro-Investment Models
Pay attention to developers experimenting with shared ownership, community co-funding, or purpose-led REITs.
4. Digital Impact Tools
Explore technologies transforming how schemes report and communicate ESG metrics—AR, real-time dashboards, blockchain, and more.
5. Policy Alignment
Watch how projects tie into government priorities—from Levelling Up to Net Zero—and whether they resonate with younger backers.
ESG isn’t dead—It’s evolving
The backlash against ESG is not its obituary—it’s its next chapter. As Gen Z and Alpha rise in economic influence, they won’t settle for slogans. They’re looking for developments with real-world benefit, transparent delivery, and values they can trust.
For investors and developers at UKREiiF, the message is clear:
- Don’t just say it—prove it
- Don’t design for regulation—design for relevance
- Don’t wait for the future—build for it now