Sustainability Certifications in Real Estate: Value and Perception
This study examines the influence of sustainability certifications on the real estate market, particularly highlighting the advantages they offer compared to uncertified buildings and their recognition within the industry. A survey targeting various industry professionals garnered ninety responses,...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2024-11-01
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| Series: | Buildings |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2075-5309/14/12/3823 |
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| Summary: | This study examines the influence of sustainability certifications on the real estate market, particularly highlighting the advantages they offer compared to uncertified buildings and their recognition within the industry. A survey targeting various industry professionals garnered ninety responses, predominantly from the real estate sector. The survey explored the respondents’ awareness and perceived benefits of sustainability certifications, their priority areas within sustainability, and the relevance of these certifications across different real estate sectors. The analysis also compared the additional costs and operational savings of certified versus uncertified buildings. Among the certifications, LEED and BREEAM were the most recognized. The primary benefits associated with these certifications included enhanced corporate image, improved health and well-being, increased building value, and higher rental yields. We estimated a valuation and rent premium for certified buildings, noting that these premiums were more pronounced among respondents who were younger, had less professional experience, and were from the property sector. The office market was identified as the segment placing the highest importance on sustainability certifications. Additionally, the LiderA evaluation system’s weighting closely aligned with the respondents’ sustainability priorities. This study concludes that while sustainability certifications incur a cost premium, this is outweighed by the appreciation in building value, rental advantages, and operational cost savings. |
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| ISSN: | 2075-5309 |