Insight on Expo Real 2023: Great need to catch up in the certification of commercial real estate in Germany
Sustainability and EU taxonomy compliance were the defining themes at Expo Real. However, very few commercial properties in Germany have been awarded certification by DGNB, Breeam, Leed & Co.
Of the approximately 44,000 commercial properties in Germany included in IZ Research, just 0.5% (n = 213) have been awarded at least one certificate (certified or pre-certified). 0.9% of commercial properties are nevertheless seeking certification, leaving almost 99% non-certified properties.
Not surprisingly, most certificates in Germany are awarded by the German Sustainable Building Council (DGNB), followed by the British certification system Breeam.
According to the report results, sustainability criteria are more often implemented in new buildings or their implementation is being sought.
Not every project development is intended to be sustainable. Measures for more sustainability apply to both existing and new construction projects.
However, the main task of the real estate industry in the future will be the sustainable development of existing buildings. The sheer size of the old building stock makes it necessary to focus sustainable measures on the existing stock. Monetary and tax incentives and concessions from the legislator could be helpful here. Time and again, this is the tenor at industry events.
In times of increasingly scarce and expensive resources, however, the redefinition of real estate values, which places the circularity of buildings at the centre of real estate valuation under the aspect of resource efficiency, is also an economic alternative. If the building materials and building products used and the degree of their recyclability are included in the valuation as a circular return, so-called deconstruction premiums can be determined that significantly increase the value of the property. In this way, an incentive is created for investors and owners to improve existing properties in terms of sustainability and, if necessary, to put properties to a new use.
by Ingeborg Maria Lang, Head of Digital Research IZ Research
