The Royal Institution of Chartered Surveyors (RICS) has joined other real estate experts in setting up a project which will promote the integration of energy efficiency and renewable energy issues into the valuation process.

The Royal Institution of Chartered Surveyors (RICS) has joined other real estate experts in setting up a project which will promote the integration of energy efficiency and renewable energy issues into the valuation process.

RenoValue, an EU Intelligent Energy Europe funded project, will develop training for property valuation professionals on how to factor energy efficiency and renewable energy issues into the valuation process, to better understand the impact on building performance and property values and to advise their clients accordingly.

As one of the project’s leaders, RICS was instrumental in developing the project proposal together with the Karlsruhe Institute of Technology (KIT).

RICS and the KIT are part of a consortium comprising Swedish development and construction firm Skanska, property adviser CBRE, Dutch valuation firm Troostwijk, the Polish National Energy Conservation Agency, the RICS accredited Politecnico of Milan and Business Solutions Europa, a Brussels-based consultancy.

Empirical studies consistently show that within several markets around the globe property pricing increasingly distinguishes between buildings that exhibit different 'green features' and associated physical or operational performance. Evidence shows that these features are translating into higher value in the form of increased rental rates, higher sale prices, increased occupancy rates, lower operating expenses, faster marketing-times, higher net operating income, lower capitalisation rates, and, in the case of commercial buildings, increased workers’ productivity.

'From an RICS perspective, RenoValue is very timely as the January 2014 RICS Red Book edition now specifically lists sustainability as a factor that valuers need to take into account when performing valuations and risks assessments for their clients. By participating in the RenoValue project RICS is underpinning the existing core elements of dedicated sustainability related research and guidance for valuers with a targeted capacity building programme to accelerate large-scale market transformation towards more sustainable property markets,' said Ursula Hartenberger, RICS global head of sustainability and chair of the RenoValue European valuation steering group.

'Property valuation is an essential aspect of the property lifecycle. With market demand for energy efficient buildings increasing, it has become vital to provide real estate valuers with detailed information on how to integrate the effects of energy performance into the valuation process,' said Reno Cardiff MRICS, partner and head of business space capital markets at Cushman & Wakefield in Spain, member of the RICS Europe board, chair of the RICS Europe Virtual Valuation Network and expert member of the RenoValue European valuation steering group.