TRENDS IN WATER
Two-thirds of the Earth’s surface is covered in water, yet less than 1% is drinkable and accessible, while global freshwater demand is projected to exceed supply by 40% by 2030.
The water crisis is no longer limited only to nations and drought-stricken areas we usually associate with poor access to water, as the impacts are being seen in developed nations in the global North.
For instance, according to the European Environment Agency (EEA), Europe is facing increasing water scarcity since 2010, with 34% of EU territory being affected at least during one season in 2022.
These water trends have awakened decision makers to take action, including in the EU. To respond to this looming threat, the European Commission has developed its water resilience strategy to improve water management while making businesses more competitive and innovative.
Water management is in a transformative phase as we have entered the second half of the 2020s. Rising costs, regulatory pressure, and technological advances are changing the playing field in real estate as we find ways to protect of one of our most precious resources.
Read more on this article, and our Annual Water Report 2025!
Climate change is only expected to intensify the seasonal fluctuations of freshwater availability in Europe.
Lue lisää vedenkulutuksen vähentämisestä
The effects of climate change are no longer a distant threat, as previously unaffected areas start to see the impact of our warming climate. Furthermore, freshwater availability and water security are not expected to improve as urban heat waves, droughts and floods are made more severe by climate change.
Water stress affects 34% of the EU territory seasonally, with Southern Europe experiencing repeated droughts. Climate variability creates operational risks that extend far beyond environmental concerns, especially as aging water infrastructure is in dire need of an upgrade.
As a result, proactive water management becomes essential for business continuity and risk management.
Is the price of water at an all-time high? Due to the effects of climate change and the uncertainty of water availability, the price of water is on the rise.
As our 2025 Annual Water Report shows, the average increase in water tariffs between 2023 and 2024 is close to 10% across Northern Europe. Meanwhile, the general inflation rate has been approximately 4-5% in most of the region.
However, this is just the average as some countries have seen even greater leaps in costs, with Sweden experiencing a 16.6% hike in average water tariffs, followed by Norway at 14.3%, the Netherlands at 10.5%, Denmark at 9.5% and Finland at 8.8%.
Unfortunately, these are not temporary price adjustments. Decades-old, aging water infrastructure requires investments, combined with changing climate demands.
On a global scale, the World Bank estimates a $7 trillion investment gap in water infrastructure by 2030.
Property managers can no longer treat water as a predictable utility expense.
Properties without comprehensive monitoring systems face budget volatility. Real-time consumption tracking and leak prevention have become essential for accurate financial planning.
Properties without automated data collection systems can face significant compliance challenges.
The EU's Corporate Sustainability Reporting Directive (CSRD) requires detailed water consumption disclosure starting in 2025. This extends beyond basic usage to include leak documentation, efficiency measures, and environmental impact assessments.
Meanwhile, organizations with established monitoring systems can focus on optimization while competitors scramble to meet basic reporting requirements. In other words, compliance with the new regulatory reality makes economic sense and becomes a must for keeping up with the competition.
ESG certification and benchmarks, like GRESB and BREEAM, emphasize water management capabilities and use them in the overall property evaluation. Properties with comprehensive monitoring systems can earn points towards their evaluations depending on implementation scope and active management practices.
ESG-focused investors increasingly prioritize properties with demonstrated resource efficiency, including smart water management, which directly influences property valuations and financing terms. This translates to a competitive advantage as both investors and sustainability-conscious occupants appreciate commitment to sustainable practices.
Smartvatten customers can earn up to 18 points for their BREEAM certification and are automatically granted 4.916 points towards their GRESB.
Artificial intelligence is an emerging technology also in the realm of water management. AI can deliver measurable operational improvements across the property sector. Advanced algorithms optimize everything from leak detection to energy consumption, creating new benchmarks for efficiency and cost control.
The global AI in water and sanitation market is projected to reach $24.45 billion by 2031, growing at 26.8% annually. Furthermore, implementing AI can reduce energy consumption while extending asset lifespans through predictive maintenance. These systems learn from consumption patterns, weather data, and operational feedback to optimize performance.
Properties implementing AI-driven water management gain operational intelligence that manual systems cannot match. Additionally, real-time optimization, predictive maintenance scheduling, and automated efficiency improvements create sustainable competitive advantages.
Water infrastructure cybersecurity has moved from theoretical risk to operational necessity. Nation-state cyberattacks on water utilities have tripled in recent years, forcing property owners and utilities to rethink their security strategies.
For example, Finland has proactively addressed these threats and implemented comprehensive cybersecurity measures across critical water infrastructure. Finnish experts suggest that successful cyberattacks would likely cause short-term water distribution interruptions rather than catastrophic failures.
Yet authorities have recognized that water systems represent attractive targets. Water infrastructure is an alluring target especially for state-sponsored attacks, given water's essential role in society and potential for widespread disruption
EMERGING WATER TRENDS
These trends reflect how water management is evolving from reactive maintenance to strategic asset optimization. Properties that adapt early can gain competitive advantages in cost control, regulatory compliance, and market positioning.
Implementing comprehensive monitoring systems before regulatory deadlines
Establishing baseline consumption data for benchmarking and improvement tracking
Integrating water efficiency into broader ESG and operational strategies
Developing response protocols for leak detection and usage anomalies
Organizations that treat water efficiency as a strategic investment rather than a compliance cost will lead their markets.
Try our free Solutions Advisor to see how much your property portfolio could save on water costs.
Smartvatten's comprehensive monitoring solutions help property owners stay ahead of these trends while optimizing costs and supporting compliance reporting.
Contact us to discuss your specific needs
Advanced monitoring systems now detect leaks and immediately alert property owners to problems that could otherwise go unnoticed for weeks. Besides conserving water, properties with comprehensive monitoring report average savings of 20% on water expenses.
These water-saving measures would not be possible without:
Real-time IoT sensors tracking usage and gathering data on leaks and overall consumption efficiency.
Automated reporting and alerts that enable prompt reaction and transition water management from reactive to preventive.
Detailed consumption analytics that allow building owners to optimize their water usage across entire portfolios.
Water saving technology is now seen as a strategic investment, with payback periods sometimes measured in months instead of years, especially in properties with frequent leaks.
Our data shows that 67% of monitored properties experienced leaks in 2024, with 15% dealing with multiple monthly incidents. Assuming that leaks lasting more than 5 days would have continued for 30 days without detection, Smartvatten’s monitoring contributed to water saving of 1,15 million liters.
Related articles
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Water rates are rising across Europe: how can property owners prepare?
Water Utilities Are Facing Rising Costs
Water-saving solutions: Practical water management strategies for real estate
Water reporting: Essential insights for better decision-making
