Sustainability Certifications: A Key Factor in Real Estate Appreciation

The real estate market is undergoing a major transformation: sustainable buildings are no longer just an ethical choice, they’ve become a smart investment. Certifications such as LEED, BREEAM, WELL, or LiderA demonstrate that a property meets key environmental, efficiency, and well-being standards. But do these certifications actually influence the value of real estate assets? The answer is clear: yes and increasingly so.

What Are Sustainability Certifications?

Sustainability certifications assess a building’s performance across several dimensions:

• Energy efficiency and emissions reduction
• Water management and responsible resource use
• Indoor environmental quality (ventilation, thermal comfort, natural lighting)
• Use of sustainable materials and responsible construction practices
• Integration with urban mobility (access to public transport, bike paths, etc.)

Labels like LEED and BREEAM are recognized worldwide, while LiderA stands out as the Portuguese environmental assessment system¹.

Why Certified Properties Are Worth More

1. Increased Sales and Rental Value

Several studies confirm that certified properties achieve significant premiums:

• +9.54% in sale price and +12.10% in rental value in Portugal¹;
• A global trend of 6% higher rents and 7.6% higher sales compared to uncertified properties².

For investors and developers, investing in certification is not just an environmental statement, it’s a direct driver of profitability.

2. Lower Operating Costs

Certified buildings consume less energy and water, leading to lower operational expenses. Efficient HVAC and lighting systems reduce maintenance costs and increase equipment lifespan, resulting in substantial annual savings for owners and occupants¹.

3. Higher Demand and Occupancy Rates

Both companies and individuals are increasingly aware of sustainability issues. For tenants, living or working in a certified building means better quality of life (clean air, natural light, thermal comfort) and environmental responsibility.
The result: sustainable properties attract stronger demand, maintain stable occupancy, and remain competitive even during economic downturns.

4. Competitive Advantage and Corporate Image

For companies, occupying certified buildings is also a reputation strategy. Many corporations have ESG commitments and seek spaces aligned with these values. Property owners offering sustainably certified assets increase their appeal to major clients and institutional investors³.

5. Protection Against Future Regulations

With the ongoing energy transition and decarbonization goals, non-sustainable assets risk losing value or requiring costly upgrades. Green certifications help anticipate regulations, ensuring legal compliance and long-term appreciation.

Challenges and Associated Costs

Of course, certification comes with certain challenges:

• High initial investment in materials and technology;
• Technical complexity, especially for older buildings;
• Additional time required for planning and construction;
• Need for periodic updates to maintain certification.

Nevertheless, research shows that the benefits far outweigh the costs, especially in competitive markets.

Conclusion

Sustainability certifications have become a key factor in real estate valuation. By ensuring efficiency, quality of life, and alignment with environmental and regulatory standards, these certifications allow properties to stand out in the market, attracting greater demand and long-term value.

At Teppe, we recognize this importance and work every day to progressively integrate sustainable practices into our projects. While we are still at the beginning of this journey, our commitment is clear: to evolve continuously so that every development reflects not only innovation and quality but also a growing responsibility toward the environment and the community.

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Sources:

1. MDPI: Sustainability Certifications in Real Estate: Value and Perception

2. World Economic Form: The conversation about green real estate is moving on as corporates prioritize sustainability

3. CBRE: Is Sustainability Certification in Real Estate Worth it?