Research by ING, Realo and CFP shows the financial impact of sustainable renovation in Belgium

Is it worth it financially to renovate a house sustainably? 

A joint study conducted by ING, Realo and CFP Green Buildings offers illuminating insight into the financial benefits of sustainable renovation in Flanders. This research focused specifically on whether it is cost-effective to upgrade a home from label F to label D or A, and what the financial implications are. 

Two online tools were used as the basis for the survey. On the one hand, the Sustainable Buildings Guide, developed by CFP Green Buildings in collaboration with ING, played a crucial role. The tool, available to all ING customers in Belgium, enables users to get started on making their homes more sustainable with minimal knowledge of sustainability. Through minimal data entry, users gain insight into their current Energy Performance Certificate (EPC) and what steps are needed to get to label D or A. 

According to Floor Rekers of CFP Green Buildings, the Sustainable Buildings Guide offers insights based on 20 years of consulting experience, combined with Belgian legislation and strategic collaborations with Cushman & Wakefield and Belmap, among others. On the other hand, Realo, a leading property platform, proved indispensable for understanding the value of homes and the impact of the EPC on house prices. 

Fabrice Luyckx, lead data engineer at Realo, emphasises, “We have seen since 2023 that homes with an EPC label F are falling in value, while homes with an EPC label A are becoming more expensive. So it is increasingly worth it financially to renovate homes sustainably. In addition, building plots have become around 25% more expensive in recent years. So it may be more interesting to buy a house with label F and renovate it, rather than build your own.” The research conducted helps us to further identify the exact impact of sustainable renovation.

The results: sustainable renovation almost always pays off 

The study shows that, in most cases, sustainable renovation saves money (sometimes a lot of money) in Flanders. Homeowners can realise significant savings by upgrading from label F to label D or A.  

Key findings include:  

• The financial benefit of an energy renovation can be as much as €57,000 for certain homes. 
• The financial benefit is greater for terraced houses than for detached houses. 
• The biggest gains are made in the most energy-intensive homes. 
• For apartments, the return can be negative when renovating from EPC D to EPC A. 

What does this mean for the future? 

Wouter Thierie, property economist at ING, predicts that the financial benefits of sustainable renovation are expected to increase further in the future, especially with the expected tightening of sustainability regulations. And while sustainable renovations in apartments can currently have a negative impact, he sees a positive trend for the future in this area too, with the negative impact becoming smaller and smaller.  

Want to learn more? 

Read the full report on ING Belgium’s website. For more information about the study and the Sustainable Buildings Guide, please get in contact with us.