Office buildings with low energy label down as much as 40% in price due to energy label requirement

Office buildings with low energy label down as much as 40% in price due to energy label requirement

The energy label C obligation for office buildings has led to a sharp price drop for properties with a low energy label. This is the conclusion from a study on the effects of this label obligation conducted by Maastricht University. Office buildings with an energy label G have dropped in price by up to 40% compared to offices that do meet the label requirement.

In 2018, the government announced that all office buildings in the Netherlands must have at least energy label C by 2023 or they will officially be banned. Maastricht University has taken stock of what effects that measure has had. The research was commissioned by the Netherlands Enterprise Agency (RVO) and Dutch Green Building Council (DGBC) in collaboration with the Dutch Association of Estate Agents and Valuers (NVM).

This article previously appeared on www.duurzaam-ondernemen.nl | Image: stock photo.

Lower prices, but rents unchanged by regulations

In addition to the drop in prices for low-label offices, the researchers find that the measure has virtually no effect on rents in office buildings. "Market rents in low-energy offices are on average about 5% higher, but this percentage has remained unchanged after the label-C regulation. Tenants do not seem to care much about the regulations for now," concludes researcher Nils Kok, professor of real estate finance at Maastricht University.

Great label jumps

The researchers see that since the government announcement, large label jumps are being made. Of offices that are being made more sustainable, 75% make the step directly to energy label A, measured in square meters. Project manager Eefje Stutvoet (DGBC) responds, "That's a good thing. When offices are improved, fortunately it happens right away. It is also because a more ambitious label requirement in 2030 is hanging over the market. Meanwhile, the advice has already moved towards label A+++, or preferably completely Paris Proof, i.e. CO2 neutral."

Growth in label C and higher

Further research shows that by the end of 2022, 77% of offices with an energy label will meet the label requirement. Before the announcement, the figure was 63%. Stutvoet: "That seems a step in the right direction, but still 30% of all offices have no energy label at all. So we don't have a picture of those."