While all major vehicle markets in the world have seen a growth in the adoption of electric vehicles since 2019, some have embraced them much more than others. Top of the charts is Norway, where EVs made up 86 per cent of all new sales in 2021, helped by the fact that it started the transition way back in the 1990s, the presence of generous tax incentives, and by a somewhat exceptional set of advantages, including the fact that the country’s energy supply is almost totally renewable through the use of hydro-electric power.
For those countries that physically cannot mimic Norway’s example, encouraging mass adoption doesn’t just come down to winning consumers over through exciting new models or government subsidies. With the best will in the world some nations will be slower to adopt due to reasons including, but not limited to, the fact the average EV cost remains much higher than the average income, or the lack of infrastructure or grid capacity to cope with a swift transition.
The real estate industry obviously has a role to play in helping to resolve the latter. Putting aside the incomparable Norway and considering the country with one of the next highest penetration rates – The Netherlands – it’s clear how property can help hasten the change.
The Netherlands boasts the highest number of chargers per capita globally. Residential properties where the owners have a parking space and are part of an owners association have advice on installing EV charging points subsidised, while multiple charging point operators work in the same place at large public locations meaning users don’t face a ‘charger lottery’ by not having access to the right charger in the right place. This has all been facilitated by the government setting a clear National Charging Infrastructure Agenda to deliver 1.8 million charging points by 2030, bringing together local governments, grid operators, businesses and industry organisations, to make the change happen.
While other social and geographical factors have helped play a part in making the Dutch an extremely EV friendly nation, it’s clear from the above the impact real estate can have. And it’s also clear that it’s in our interests to do so. Beyond the environmental imperative, there are a number of real estate opportunities in EV adoption, from chargers increasing dwell time at retail destinations and some EV brands taking flagship retail spaces themselves, through the upgrading and conversion of service stations and forecourts, to residential properties with EV charging points starting to be in high demand and acquiring a premium.
Global consumers are already taking the breaks off when it comes to wanting to switch to EVs; the real estate industry is playing an increasing role in helping them to accelerate away.
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