Strong circular performance leads to higher building valuation

For the first time in the Netherlands, we demonstrate how circular performance can be incorporated into real estate valuation.
With the whitepaper “Circular Valuation: Integrating Circular Performance into Market Valuation”, valuers can now concretely include the following circular aspects in property assessments:

• Healthy materials | contribute to a healthy indoor climate and therefore a more pleasant living or working environment
• Adaptive capacity | ensures that a building can be adjusted to changing functional or regulatory requirements
• Disassembly potential | enables building components to be more easily replaced and maintained
• Reuse potential | ensures that used building components can be reused

Background

This project was initiated to accelerate circular construction in the Netherlands. The transition is still moving too slowly. High circular ambitions often fail due to limited budgets, even though we intuitively know that circular buildings deliver more value.

Including this added value in real estate valuation makes it easier to finance circular buildings. And the more often these buildings are financed and constructed, the greater the scale and further development of the circular construction sector will be.

Involved Parties

This project originated as a breakthrough initiative within our strategic collaboration with the Municipality of Amsterdam. The method was developed together with our consortium partners Envalue, Alba Concepts and Impact Institute. We received financial and substantive support from the TBI Klimaattrein and Invest-NL.

What’s next?

This marks an important step toward a fully circular construction sector. However, many steps still need to be taken. Which additional indicators should be included? And should we not also look beyond market value — for example, at societal value?

Would you like to join the conversation? Sign up for the session “Circular Valuation: What’s Next?!” during Dutch Design Week. There, we will engage with designers, developers, and financiers to determine the next steps.

*Please note that this publication is only available in Dutch.