Residential and commercial properties need energy – and a lot of it. The Swiss building stock is responsible for 40 per cent of Switzerland’s final energy requirements and a third of domesticCO2 emissions. This is why property also plays a key role in the energy transition. However, striving for greater sustainability in the building sector not only makes sense from an ecological perspective, but also from an economic one. Investments to increase energy efficiency and switch from fossil fuels to renewable energies have a value-enhancing effect. And sustainable buildings are marketable in the long term. Migros Bank offers its corporate customers a free analysis to identify the optimisation potential in their property portfolio. Bernd Geisenberger, member of the Executive Board and Head of Corporate Clients, explains in an interview what opportunities sustainable real estate offers and how customers with a real estate portfolio can benefit from Migros Bank’s expertise.
What is a sustainable property?
Basically, a sustainable property is one that provides ecological, social and economic benefits in the long term. What this actually means for an individual building must be assessed on a case-by-case basis and cannot be generalised. The social and economic benefits in particular depend on the intended use of the building. This means that there can be major differences from case to case. In terms of environmental sustainability, the aim is to increase the building’s energy efficiency and reduce emissions, among other things.
Migros Bank offers a free analysis of property portfolios. What is analysed?
Together with customers, we examine residential or commercial properties for sustainability, yield, potential and marketability. Together with property experts, we have developed a tool for this purpose. This tool shows which investments have an impact on theCO2 emissions of the property portfolio, as well as the income and costs resulting from these investments. It often turns out that an energy-efficient refurbishment or an early replacement of the heating system, i.e. switching from fossil fuels to renewable energies, has a positive impact on profitability.
What follows the analysis?
A consultation in which we show our clients the opportunities and risks of their property. We also discuss possible strategic positioning of their portfolio on the market.
You talk about opportunities. What exactly do these look like for sustainable buildings?
If the energy efficiency of buildings increases, energy costs fall. This is directly noticeable. Of course, the investments – for example in the refurbishment of the building – have to be amortised. However, expensive energy costs mean that the amortisation period is short in many cases. Increased energy efficiency also increases the market value of the property. However, the increase in attractiveness is not only noticeable in the event of a sale, but also for rental properties. The demand for sustainable buildings with low ancillary costs is high. Tenants are prepared to pay more for sustainable living space. In addition to these measurable benefits, sustainable buildings also offer opportunities that cannot be directly quantified, such as improved reputation. By investing in sustainable property, a company can position itself as a responsible player. This often has the effect of strengthening relationships with customers, investors and partners.
The trend towards greater sustainability in the property sector is picking up speed. Will the wind change again?
Sustainability is not a passing fad, but essential in the long term. Addressing the issue at an early stage makes it easier to plan investments and thus increases the ability to act. Those who invest in sustainable property today are therefore better prepared for the challenges of the future.
