As investors navigate widening socio-economic inequalities, shifting tenant expectations and heightened scrutiny from stakeholders, the question is no longer whether social value matters. The real question is can it be delivered in a way that’s both meaningful and investable?

At Aberdeen Investments, we believe social value is most powerful when it’s grounded in the realities of buildings, tenants and local communities – and when it’s closely aligned to the fundamentals of investment performance.

Moving beyond monetary value-to-society measures

Despite its growing profile, social value in real estate has often struggled to be translated from a concept into an action. Much of the industry has relied on monetised ‘value-to-society’ models that assign pound-value figures to social outcomes. Such value-to-society models can also risk conflating social value delivered inherently by a building and its very existence, with social value delivered intentionally by the landlord.

While these frameworks can serve a reporting purpose, they often fall short at an asset level. A single monetary figure can obscure what matters most: 

Crucially, putting a price on social outcomes rarely helps investment teams make clearer decisions on underwriting, where to allocate capital, or how to manage assets – nor does it provide a transparent means of reporting on social value.

Social value to support investment performance

Real estate assets don’t exist in isolation. They operate within complex local ecosystems that are shaped by employment patterns, affordability pressures, access to services, and community infrastructure. How well a building responds to these dynamics has a direct influence on its long-term resilience.

Assets that support tenant wellbeing, affordability, safety and community connection are more likely to: 

This relationship is particularly evident in sectors such as residential and retail, where tenant experience and community relevance directly influence occupancy, footfall and income stability. When approached with commercial discipline, social value can strengthen social outcomes and investment returns.

A local, needs-led perspective

Aberdeen Investments adopts a local, needs-led approach that reframes how social value is assessed and delivered. Instead of asking, “What is the total financial value of the social impact delivered by our buildings?” we believe more actionable questions are: 

This perspective grounds social value in the lived reality of places and allows investment teams to focus attention where it matters most.

The breadth and depth of social needs

Central to this approach is distinguishing between the breadth and depth of social need. 

Analysing breadth and depth together provides a more nuanced understanding of where an asset can play a credible role in meeting local needs. It also ensures resources are directed towards initiatives with the greatest potential to deliver social relevance and investment value.

Importantly, this framework recognises that no single building can solve structural social challenges. Instead, it clarifies the contribution an asset can realistically make – and where that contribution is most justified.

Inherent versus intentional social value

A further distinction we make is between inherent and intentional social value. 

By first understanding what an asset already provides inherently, investors can identify where intentional actions are most appropriate – and where they best align with a fund’s strategy and risk-return objectives.

Embedding social value into investment decisions

Treating social value as integral to investment decisions, rather than a discretionary spend or simple reporting metric, is where this approach comes into its own.

Targeted initiatives can be: 

Over time, effectiveness can be monitored through asset-level key performance indicators, tenant and community engagement data and operational indicators such as occupancy, churn and net-operating income. This creates a feedback loop between social outcomes and financial performance, which supports more informed, adaptive asset management.

A more grounded model for the future

In a market where regulation remains uneven and methodologies are fragmented, a locally grounded, needs-based approach offers a pragmatic and investment-relevant path forward.

By focusing less on reporting monetary value-to-society figures, and more on understanding who buildings serve – and how well they serve them – social value becomes clearer, more actionable and more durable.

For investors willing to engage at this level, the opportunity is compelling: stronger communities, more resilient assets and sustainable long-term performance.

At Aberdeen Investments, social value isn’t an overlay to investment strategy, it’s an integral component of how high-quality real estate performs over time.

Done well, this approach strengthens both places and portfolios – which, ultimately, is what successful real estate investment is about.