‘Green’ property can translate into financial gains, according to a study

Green housing can be financially lucrative, according to a new study. (Pexels)

An organization working to accelerate decarbonization in Quebec is publishing a white paper on Thursday aimed at demonstrating that a property portfolio that takes sustainability and climate resilience into account is also synonymous with financial sustainability.

The aim of the study, initiated by Décarbone+ in collaboration with Hydro-Québec, La Caisse and HEC Montréal’s IDEOS Centre, is to provide the Quebec and Canadian property sectors with tools to protect their capital. The sector could face “irreversible technological and regulatory obsolescence” if it does not embrace the energy transition.

Décarbone+ notes that these changes will not happen overnight, but that a paradigm shift is required at every stage of the chain.

Energy efficiency is particularly highlighted by the financial models presented in the white paper, which explains that an energy saving of $1 per square foot in an office building can result in a 4.5 per cent increase in market value. Furthermore, “green” appeal leads to a reduction in vacancy rates.

Conversely, an office building that is obsolete from an energy and regulatory perspective sees its value reduced by 10.9 per cent.

In the multi-residential sector, there is a positive impact on market value of 6.3 per cent when energy optimization of $400 per unit per year is implemented.

The organizations behind the white paper are therefore calling for standardization of practices “to break the current deadlock, where the benefits of sustainability are often poorly captured by traditional valuation mechanisms.”

Examples of practices implemented in other countries are cited. For instance, in the United Kingdom and France, it is prohibited to rent out properties with poor energy performance.

This report by The Canadian Press was first published in French on April 9, 2026.