RICS partners in new European project to mainstream green credentials into property valuation
April 22, 2014
A group of experts in green building, investment and finance and property valuation gathered in Brussels to mark the launch of RenoValue, a new European project aiming to further integrate the energy performance of buildings into the property valuation process.
As one of the project’s work leaders, the Royal Institution of Chartered Surveyors (RICS) has been instrumental in developing the project proposal together with its industry – academia partner, the Karlsruhe Institute of Technology (KIT). RICS and the KIT are part of a consortium comprising the Swedish development and construction firm Skanska, property and real estate services adviser CBRE, Dutch valuation firm Troostwijk, the Polish National Energy Conservation Agency, the RICS accredited Politecnico of Milan and Business Solutions Europa, a Brussels-based consultancy.
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.
RenoValue, an EU Intelligent Energy Europe funded project, will develop 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.
“From an RICS perspective, RenoValue is very timely as the January 2014 RICS Red Book edition now specifically lists sustainability as a factor that valuers need to take into account when performing valuations and risks assessments for their clients. By participating in the RenoValue project RICS is underpinning the existing core elements of dedicated sustainability related research and guidance for valuers with a targeted capacity building programme to accelerate large-scale market transformation towards more sustainable property markets,” said Ursula Hartenberger, RICS Global Head of Sustainability and Chair of the RenoValue European Valuation Steering Group.
“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 RenoValue European Valuation Steering Group.
“Sustainability features and their impact on the value of real estate have become a key issue for a range of stakeholders which operate in the sector, from developers to banks. CBRE recognises the gap between what is available and what is required by valuers when assessing the potential valuation effect of a particular building feature. We are pleased to be at the forefront of this initiative to improve valuer awareness of the issues, and promote best practice at a European level,” said Mark Creamer MRICS, Head of EMEA Valuation & Advisory Services at CBRE, one of the partners of the RenoValue project.
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