Sustainable real estate in the Netherlands: why it matters for investors and the planet

Sustainable real estate refers to buildings that are designed, constructed and operated in a way that minimizes negative environmental and social impacts and maximizes positive outcomes for people and the planet. This can include aspects such as energy efficiency, renewable energy, water conservation, waste management, biodiversity, health and well-being, accessibility, affordability and community engagement.

There is growing evidence that sustainable real estate can deliver multiple benefits for investors, such as lower operating costs, higher occupancy rates, higher rents, higher tenant satisfaction, lower obsolescence, higher resilience and higher asset value. Moreover, sustainable real estate can help investors meet the increasing expectations and requirements of their stakeholders, such as regulators, clients, tenants, employees and society at large.

The Dutch government is also committed to advancing sustainability in the real estate sector. In its recently published government programme for 2024 – 2028, the Dutch government emphasizes the importance of investing in the sustainability of existing buildings to meet climate and energy goals. This primarily includes improving the energy efficiency of homes and buildings, focusing on insulation and the development of heat networks. Pursuant to the government programme, there will be no new mandatory sustainability requirements for new homes beyond existing European regulations, except where necessary to comply with European directives or to meet the sustainability goals. This sounds like not much is happening, but in fact the contrary is true. National and international initiatives, such as the Paris Agreement on climate change, the UN Sustainable Development Goals, the EU Green Deal and the Dutch Climate Act, set ambitious targets and standards for reducing emissions, improving energy efficiency, increasing renewable energy, enhancing circularity and promoting social inclusion in the built environment.

In the next years, the Dutch government will be focussing on energy transition, security of energy supply and climate adaption. This focus will also impact the policy objectives of developing 100.000 new homes each year as well as improving the sustainability of existing homes and buildings. Legislative amendments have for example already been announced to (i) phase out E/F/G-energy labels for rental properties, (ii) to implement the updated Energy Performance of Buildings Directive, and (iii) to simplify decision-making in homeowners’ associations related to implementing sustainability measures.

In this blog series, we will explore in more detail the various aspects and benefits of sustainable real estate, as well as the challenges and opportunities for investors. Stay tuned for our next post, where we will discuss the legal challenges around one of the legislative developments following from the updated Energy Performance of Buildings Directive: the obligations for property owners and property developers regarding the implementation of an electric charging station infrastructure.