Market Report – ESG

Description

From the Report

In this year’s edition of the ESG Market Report, Newsec explores the relationship between a building’s energy classification and its market value.

The energy classification of buildings has become an increasingly important tool for assessing property quality, operating costs, and market value. At the same time, regulations within the EU are tightening through the Energy Performance of Buildings Directive (EPBD), which must be implemented into Swedish law by May 29, 2026. The directive introduces step-by-step requirements for all new and existing buildings in the EU to become zero-emission buildings by 2050, with a focus on energy efficiency, renewable energy, and reducing greenhouse gas emissions throughout the entire life cycle.

To examine the impact of energy classification on property value, Newsec conducted a study based on over 1,000 property valuations carried out in 2024. The analysis shows that properties with a high energy rating are, on average, valued approximately 15% higher than comparable properties with the lowest energy classification. These differences are statistically significant and indicate that investments in energy efficiency are not only important from a climate perspective – but also have a direct positive effect on property value.