Energy-guzzling offices have plunged in price by up to 40%, according to a study by the University of Maastricht published in the ESB journal.

According to legislation that came into effect in January, offices in the Netherlands must have an energy efficiency label of C or above. The Maastricht researchers found that, although rental prices did not rise for more energy efficient offices, sales prices dropped significantly for those that are guzzling gas.

Since the legislation was first discussed in 2018, the price for offices with a rating lower than a C dropped by almost 20%, and for a G label – the worst possible – the prices were almost 40% lower, according to an analysis of sales.

“Especially the lower end of the market, with the really energy inefficient buildings, have seen a gigantic drop in price,” Nils Kok, professor in real estate finance at Maastricht University, told the Financieele Dagblad.

Research from the NVM estate agents association last year suggested that – although they are not subject to government rules – domestic houses with a higher energy are also worth more. A home with a C label can be worth 7.9% more than one in the same street with a G label.

Energy efficiency can also affect the rate offered to borrow money such as a mortgage.

However, there is some evidence that fraudulent labels have been issued to homes and business premises in recent months. In August, a man was arrested on suspicion of selling hundreds of false energy reports, which were nowhere to be found in the official national database.

The FD reports that none of the Netherland’s 342 municipalities has yet closed an office for failing to meet the C-demand – and some of their own buildings are not yet compliant, for example in Amsterdam.

However around two-thirds of areas have begun to enforce and owners of energy-inefficient buildings now risk fines.