Abstract
The real estate industry is significantly contributing to the global carbon footprint due to a high production of carbon emissions and the use of non-sustainable materials. The green transition of this sector is, hence, crucial to effectively achieving climate change mitigation. The main goal of this paper is to illustrate the key characteristics and trends of the real estate market at the global level and to analyse the main financial instruments available in the market to bring about a sustainable transition and growth of the industry. Evidence suggests that environmentally sustainable housing is increasingly attracting the attention of capital providers. Moreover, financial resources are mostly transferred in the form of green bonds and green lending. Finally, the paper highlights some open challenges, such as the development of reliable measures on the environmental impact and the financial performance of real estate investments, that should be addressed to speed up the achievement of the sustainable development goals.