×
Against a backdrop of energy transition and increasing regulations, the question is no longer whether real estate should become more sustainable, but rather to what extent this impacts its value. At the crossroads of societal expectations, regulatory constraints and profitability logics, sustainability is becoming an increasingly scrutinized criterion, but its effect on prices remains nuanced.


Sustainability: increasingly present in investment decisions

According to Wüest Partner's latest surveys, a majority of Swiss investors now include sustainability objectives in their purchasing decisions. Energy efficiency and renewable energies top the list of criteria taken into account. On the other hand, aspects such as grey energy or the circularity of materials still elicit a lower willingness to pay.
Some interesting figures:
  • 70% of investors analyze a property's energy performance prior to purchase.
  • 42% are prepared to pay more for a Minergie-P or Minergie-A building.
  • 25% value ecological construction using bio-sourced materials.

Differentiated impact depending on sustainable features

Today, there are factors that clearly increase value, such as :
  • Lower expected returns (lower discount rates for high-performance buildings).
  • Lower operating costs (heating, maintenance).
  • Greater flexibility of use (mixed use, easy reconfiguration).
On the other hand, certain lasting structural measures can temporarily weigh on value, particularly when they involve investments that cannot be passed on to existing rents.
It is interesting to note that in a tight market, the differential can also manifest itself in a gradual discounting of properties with low energy performance.


Certifications and tenant expectations: market signals

Labels such as Minergie and GEAK are gaining in recognition among investors and tenants alike. In some segments (offices, high-end residential), demand for certified properties is accompanied by higher rental values.
However, in the standard residential market, the willingness of tenants to pay more is still marginal - but could intensify with rising energy costs.


Towards a gradual market shift

In the medium term, experts agree on one point: sustainability will become a central valuation factor by default. In other words, non-durable goods are more likely to be discounted than durable goods to be premiumized.
This trend can be explained by :
  • The expected increase in restrictive regulations (zero net emissions, mandatory renovation).
  • ESG trajectories set by institutions.
  • Access to financing, increasingly conditional on sustainable criteria.

In conclusion

Sustainable real estate can be more valuable, but not at any price or to any extent.
It is the alignment between actual energy performance, flexibility of use and market expectations that determines the final effect on value.
For professionals, the key therefore lies in a detailed analysis of costs, the local context and the future uses of a property, integrating sustainability into any investment, renovation or development strategy today.


Sources
wuestpartner.com - Article
wuestpartner.com- Article
propertyowner.ch - Article