The increasing emphasis on sustainability in the built environment has led to the adoption of voluntary green building certifications such as BREEAM-NL. While the financial benefits of environmental certifications are well-documented in commercial real estate markets, research on their impact in residential markets remains limited, particularly in the Netherlands. This thesis investigates the effect of BREEAM-NL certification on residential transaction prices in the Dutch housing market using a hedonic price model.
A comprehensive dataset of residential property transactions is analysed, controlling for property characteristics (e.g., area, number of rooms, and year of construction), locational attributes, and neighbourhood factors (e.g., crime rates and proximity to amenities). The analysis reveals that BREEAM-NL-certified properties command a statistically significant price premium ranging between 7.2% and 15.7%. These findings align with international studies on the added value of green certifications but indicate a slightly larger premium in the Dutch residential sector.
The results highlight the economic feasibility of green certifications, offering valuable insights for developers, investors, and policymakers. For developers, the premium demonstrates that sustainability investments can yield tangible financial benefits. Policymakers can use this evidence to design targeted strategies and incentives to encourage broader adoption of green building standards.
This research fills a critical gap in the literature by providing empirical evidence on the impact of BREEAM-NL certification in the residential housing market. The findings support the role of green building certifications in driving economic value while contributing to broader sustainability goals.0