One week ago a group of experts in green building, investment and finance and property valuation gathered in Brussels marking the launch of a new European project aiming to further integrate energy performance and other green features of buildings into the property valuation process.
RenoValue, an EU Intelligent Energy Europe funded project, will develop a training for property valuation professionals on how to factor energy efficiency and renewable energy issues into the valuation process, to better understand the impact on building performance and property values and to advise their clients accordingly.
Empirical studies consistently show that within several markets around the globe property pricing increasingly distinguishes between buildings that exhibit different green features and associated physical or operational performance.
Evidence shows that these features are translating into higher value in the form of increased rental rates, higher sale prices, increased occupancy rates, lower operating expenses, faster marketing-times, higher net operating income, lower capitalisation rates, and, in case of commercial building, increased workers’ productivity.
"Property valuation is an essential aspect of the property lifecycle. With market demand for energy efficient buildings increasing, it has become vital to provide real estate valuers with detailed information on how to integrate the effects of energy performance into the valuation process", said Reno Cardiff MRICS, Partner and Head of Business Space Capital Markets of Cushman & Wakefield in Spain, member of the RICS Europe Board, chair of the RICS Europe Virtual Valuation Network and expert member of the European Valuation Steering group of the RenoValue project.
"Being able to demonstrate the business case for more efficient buildings and provide property valuers with the right information to integrate energy performance in property valuation practices is essential to accelerate the market transition towards Nearly Zero-Energy buildings in Europe” said Vincent Berrutto, Head of the Energy Unit at the European Commission's Executive Agency for Small and Medium-sized Enterprises. "This is why we have decided to provide financial support to the project RenoValue through our Intelligent Energy Europe Programme" concluded Dr. Berrutto.
"Having the right information and full understanding of the implications of sustainable features on asset value is key to make correct business decisions. This initiative will help the property market understand and manage the positive economic and environmental effects more sustainable buildings bring to property owners and to tenants" said Staffan Haglind, Green Business Officer at Skanska AB, one of the partners of the RenoValue project.