This is a brief summary of a report by an EU funded body into the issues surrounding the valuation of energy efficient sustainable buildings.
As an RICS registered valuer associated with Survey Spain I have a professional interest in this material.
The report says that valuation professionals across Europe need to be trained so they recognise the effect energy efficiency and sustainability has on values. Although valuers reflect the market rather than make the market, in practice they are involved at every stage of a buildings life cycle, and their opinion is used in negotiations between buyers and seller landlords and tenants. Valuations professional are “information managers” in an intransparent market.Here are a few quotes from the report:
“There is an emerging body of empirical evidence … that sustainable buildings not only perform better in terms of energy efficiency but also financially…..they command higher rents or real prices and / or they hold their value better over time”
“Accurate valuations are vital for a transparent property market and a stable economy”
“The built environment plays a crucial role in reaching the long term EU energy and climate goals………Meeting these targets will require 80% of the existing building stock to be refurbished….”
The Reno Project has carried out what it calls round top workshops with valuers in each country in the EU. They have established a number of issues that need to be resolved such as central databases of energy certificates and other data. They are keen on increased awareness and transparency to link transaction and energy performance data.
The training needs of some individual countries are assessed and the report makes some policy recommendations.
The full report is here: http://renovalue.eu/wp-content/uploads/2015/06/Market-Insights-Report.pdf
Written by John Wolfendale, MRICS.
John is a founder of Eco Vida Homes www.ecovidainternational.com and is passionate about bringing modern design and construction practices to Spain.