Green buildings up to 15 percent more valuable

The comprehensive analysis, based on over 1000 property assessments in Sweden from 2024, now provides numerical indications of what many in the industry have long assumed: investing in green solutions pays off — big.

“We are very pleased to present this study, which quantifies the 'green premium' in the real estate market. It confirms that investments in energy efficiency are not only an environmental responsibility, but a strategic necessity that can directly affect the value and attractiveness of property,” says Jon Harry Dahlberg Årstad, CEO of Newsec.

Significant increase in value in commercial property

Newsec's study draws on data from 670 assessments of commercial properties and 360 of residential properties. For commercial properties, the analysis shows that an increase from the lowest energy grades (F—G) to A or B yields an average value increase of as much as 15 percent. Buildings with energy grade C are also valued 7 percent higher on average, while D-E yields 5 percent higher value compared to the reference category F—G.

The report specifies that the results are based on a statistical analysis of Swedish data, and that in practice the development of values will depend on a number of factors such as location, rent levels, building type and market situation — factors that in themselves are also price drivers and must be seen in context. It is natural to assume that the same trend applies in Norway.

‍

‍

‍More driving forces behind the green premium

Several factors contribute to the fact that green buildings can achieve a higher value in the market:

• Sharpened EU requirements: The European Union's Building Energy Directive (EPBD) is pushing the real estate industry to upgrade its building stock. The goal is for all new and existing buildings to become zero-emission buildings by 2050.
• Increased market expectations: Investors, banks and tenants are making increasingly stringent demands on sustainability and energy performance. Energy-efficient premises reduce both the climate footprint and operating costs of tenants, making them more attractive.
• Reduced Operating Costs: Energy-efficient buildings have lower energy consumption, which directly lowers operating expenses for both owners and tenants — a clear economic advantage.

Solar energy as a value driver

The findings of the study also confirm that solar energy may have a direct role in increasing the value of commercial buildings.

“The results confirm the trend we have seen among our customers in recent years: the energy rating is increasing in importance. This strengthens the argument for solar cells in commercial buildings, and shows that the most important driving force is the value creation of a greener building — rather than the investment itself and electricity prices,” says Jonas Ibsen Brynildsrud, CEO of Sunday Power.

Sunday Power offers solutions that help building owners improve the energy character of their building without investment costs for the owner.

“A large percentage of our customers increase their energy rating by both one and two steps by choosing Solar as a Service. We take care of everything from investment to installation and operation. The core of what we deliver is to ensure maximum value and minimal hassle for the building owner,” concludes Brynildsrud.

To meet the growing demand, Newsec's valuation department now offers sustainability assessments for properties in Norway, as a supplement to the traditional valuations. This gives property operators better insight into how energy performance and other sustainability factors can affect the attractiveness of properties.

‍

Read also: Solar energy helps tenants

‍