The status of integrating energetic qualities of buildings into valuation practice across Europe - Results from RenoValue and consequences for RentalCal

Thomas Lutzkendorf and David Lorenz

ERES from European Real Estate Society (ERES)

Abstract: The ability to analyse and prove the economic advantageousness of energy efficiency measures/retrofits within the existing building stock is one condition for fostering modernisa-tion rates. In many cases, such analyses are focused on the possibilities to either reduce heat-ing costs (tenant/owner-occupier perspective) or to increase rental values (landlord perspec-tive). However, both landlords and owner-occupiers can additionally benefit from a further possible effect – the contribution of a building’s energetic qualities to value stability and value development. As such, the question concerning the status of integrating energetic qualities of buildings into national property valuation regimes and valuation practices across Europe arises. Within the scope of the EU-funded research project RenoValue, a training toolkit for practic-ing valuation professionals on how to factor energy efficiency issues into valuation practices is currently being developed and tested across several member states. The workshops and training events with industry representatives and practitioners that took place within the con-text of this research project also revealed additional information on current experiences and remaining barriers regarding the integration of energetic qualities of buildings into valuations across the following countries: Belgium, Germany, Italy, Poland, Sweden, the Netherlands, and UK. Within many of these countries, valuation professionals showed a high interest and motivation to uptake the issue within daily practices, but at the same time, they mentioned the lack of reliable energy performance data as on the biggest barriers. These and other insights from the RenoValue project are an important input for the EU-H2020 project entitled RentalCal. It becomes evident that the impact of a building’s energetic qualities on its value needs to be acknowledged as an economic advantage which has to be consid-ered within economic efficiency analyses of energy efficiency measures/retrofits. In addition, the important role of valuation professionals as “information managers” within property mar-kets also becomes apparent. The results of the RenoValue project allow for a more realistic assessment of how to further improve the attractiveness of energy efficiency investments within the housing industry.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2016-01-01
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