What is Sustainable Value?
Sustainable Value is the notion of use value expanded to stakeholders, i.e. including the environment and the broader society.
Use Value refers to the capacity of a property to satisfy human requirements, want or need, or its capacity to serve a useful purpose. It is one of the 3 keys aspects of real estate property value: usus (use value), fructus (rental value) and abusus (disposal value).
Why is measuring Sustainable Value critical for an efficient and Sustainable Market?
Owing to its fundamental nature, Sustainable Value is the primary determinant of rental and disposal values. It also constitutes the nexus whereby Sustainable Development factors can be integrated into the valuation process. Thus, making Sustainable Value explicit at market level is the necessary condition for Financial Value to claim its “market” qualification, and for decision-making processes to integrate Sustainable Development factors.