Revaluing Buildings Using Circular Financial Models
Rethinking current economical models is paramount to a transition to a circular built environment as these are mostly based on financial returns. But what would these new economic models be based on? In this video, Vitalija explains what factors circular financial models need to consider.
Main Takeaways
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Traditionally, buildings are treated as investment assets that allow land use maximization, enable economic development, provide financial returns and create wealth. Without proper funding, projects cannot move forward.
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When buildings for a number of reasons become obsolete they are either abandoned or underutilized. They often require a significant financial investment to used again. Decisions on such investments are made based on value calculations and the potential future income of the building.
- New circular financial models would need to combine social and environmental metric, address reuse potential, and address ownership and power issues.
Further Reading
- Research group on redefining value in real estate: https://revalue.realestate/
- EU-funded MSCA Doctoral Network on Quantum Inspired Valuation of Circular Real Estate: https://quival-research.eu/
Author
Vitalija Danivska
Assistant Professor
Dr. Vitalija Danivska is an Assistant professor at the Faculty of Architecture and the Built Environment, of the Delft University of Technology. She holds a doctor’s degree in Real Estate Economics from Aalto University, Finland, where she worked for over 6 years prior to moving to the Netherlands.Vitalija is a board member of EuroFM (European Facilities Management) Association, an advisory board member of Journal of Corporate Real Estate, a co-editor of Transdisciplinary Workplace Research and Management book series, published by Routledge. She has received multiple awards and scholarships for her research and organized a number of scientific conferences.
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