RENOVATION OBLIGATION FOR NON-RESIDENTIAL BUILDINGS

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Since January 1, 2022, a renovation obligation (after transfer of ownership) applies to all non-residential real estate in Flanders. It is hoped that this will drastically reduce the CO2 emissions of all buildings by 2050, and thus give the Flemish Climate Strategy 2050 a helping hand.

Figures show that as much as 28% of CO2 emissions come from worn roofs and poorly insulated walls, windows and doors, not only in private homes but also in non-residential properties.

For this reason, the obligation was introduced at the beginning of this year to require that every non-residential property must comply with four energy-saving measures within five years of the deed being signed.

In addition, there will be an obligation for small non-residential buildings (up to 500 m²) to achieve an energy performance label C or better within five years after transfer. Large non-residential buildings (from 500 m²) must be equipped to provide a minimum share (5%) of renewable energy.

This renovation obligation applies to every transfer of ownership or establishment of a long lease or building right, and can potentially have far-reaching financial and practical consequences in real estate transactions.