ING is working with the ten largest valuation agencies on a model for valuing sustainability in offices in a uniform way. The appraisers, which together account for a market share of 70 percent in the Netherlands, are currently testing a new standard for the valuation of office buildings. After that, they start working with homes, among other things.
Now it is not always worthwhile for property owners to make their home or office space more sustainable, because it is unclear to buyers how much value has been added. ING expects this to change with the new appraisal model. Property owners then receive a price incentive to invest in sustainability. According to the largest Dutch bank, a sustainable office building yields on average 10 percent higher rent compared to a non-sustainable counterpart.
The new appraisal method consists of nineteen sustainability indicators, which according to ING should provide an objective picture of the value of sustainability measures. Appraisers will provide feedback on the application of the new method in June.
ING has set itself the goal of turning the new appraisal model into a market standard. The bank recently conducted a survey among the ten largest appraisers and found that everyone uses a different method. The current models also do not go far enough according to the lender. “It often comes down to just recording characteristics, without linking a value to it.”