Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE credits
BREEAM is a voluntary environmental certification, which covers all aspects of the construction of a building. A BREEAM building also referred to as a green building. In Norway BREEAM is the dominant environmental certification scheme.
In the survey carried out among brokers and building owners in the Norwegian market 97.5% of respondents responds that they know or have good knowledge of BREEAM certification.
In recent years, one has recorded an increase in the number of buildings that are BREEAM certified in Norway. How does BREEAM certification affect the market value of a building? By using traditional models for valuation (discounted cash flow analysis) one can, by including the building performance and the market performance, calculate the value added. This market performance can be translated into higher rental income, higher occupancy, lower operating costs or lower risk premium.
In the survey carried out 68% responding that they think a BREEAM certified building has a higher value. The calculation that has been carried out shows that this is very likely, but that the size of the value added depends on risk assessment, as well as how the market reacts to the green building.
The biggest drivers of the continuous development of BREEAM in the Norwegian market is, according to the survey, that BREEAM buildings have higher value, transaction market demand it, image and internal value of the tenants , environmental requirements and less risk in terms of future regulatory requirements.