The Impact of the EU's Energy Performance Building Directive on the Real Estate Market

The EU has introduced a proposal to improve their what's called their energy performance building directive. The idea being that with more transparency, it provides building owners and landlords with more information on how to improve the performance of buildings. In 2022, residential assets with a sustainability rating of A or better produced a total return of 2.2% compared to 1.8% for B rating, 0.8%. For D rating or below, these buildings had a return of negative 0.9%. It could also mean that commercial buildings are going to become something different than we have seen them as for decades.