BayernLB

Sustainability criteria in valuing real estate

Wood is still an important raw material for house building in many regions of the world.

Location is one of the key criteria for determining the value of a property. In addition, sustainability criteria have gained importance in recent years. LBImmoWert knows what counts when assessing the sustainability of real estate.

The value and performance of a property are influenced by sustainability aspects such as energy consumption and the use of environmentally friendly materials. As a centre of competence for real estate valuations and research in Germany, Europe and the USA, LBImmobiliengesellschaft (LBImmoWert) has systematically integrated corresponding criteria into its valuations.

A variety of criteria to consider

The 45 experienced and certified experts of LBImmoWert take into account a range of sustainability aspects, including, for example, the technical quality of the real estate, which affects its useful life, as well as its design and its functional and ecological quality. User satisfaction is measured in the analysis of socio-cultural aspects. Of course, location also plays an important role here, e.g. how well a property is connected to public transport and the bicycle infrastructure. LBImmoWert is constantly developing its list of sustainable criteria in order to take new scientific, technological or regulatory requirements into account.

Get off the gas – the sustainability speedometer

In its valuations, LBImmoWert uses the VÖB-ImmobilienAnalyse (VIA) developed in part by the Association of German Public Banks (VÖB). This tool is used to assess the risk/opportunity profile of real estate in terms of market, location, property and cash flow. The sustainability speedometer, which is calculated for each property, clearly indicates how sustainable a property is. The following applies here: The less the speedometer needle moves, the better the property's sustainability – and consequently the higher the quality of the real estate.