The real estate market has seen a significant decrease in value for properties with poor energy performance, such as older, unrenovated houses. However, a new study by real estate experts suggests that this trend has stopped, with one exception. Properties with the worst energy efficiency ratings are still seeing a decrease in value that is almost equivalent to the costs of energy-saving renovations.
The stabilization in prices is mainly due to the fact that construction costs have stabilized and even declined in some trades. The costs of financing have also stabilized after a rise in interest rates. According to the study, in the first quarter of the year, there was an average price difference of 25.1 percent between apartment buildings with top energy efficiency ratings (A/A+) and the worst ratings (G/H), compared to 26.9 percent at the end of last year.
As rising prices for electricity and gas continue to increase, energy efficiency is becoming increasingly important in property purchasing decisions. The new law on heating replacement by the federal government has also caused uncertainty in the market. Owners of single- and two-family homes are struggling to sell their properties as buyers are hesitant to bear higher energy costs if they choose to live in them themselves. This gap between old and new properties is expected to widen, according to expert Sören Gröbel.
Despite these challenges, there is a slight improvement in property values, indicating that energy efficiency is becoming a key factor in property valuation and purchasing decisions. This positive shift signifies a positive outlook for the real estate market.
In summary, properties with poor energy performance have seen a significant decrease in value over the past year. However, recent studies suggest that this trend may have stopped except for older unrenovated houses which see a decrease almost equivalent to renovation costs. Energy efficiency is becoming increasingly important in property purchasing decisions as rising electricity and gas prices continue to increase.
The federal government’s new law on heating replacement has caused uncertainty among homeowners who need to reduce prices significantly more when selling their properties due to higher energy costs if they choose not to renovate them before selling them.
Finally, while there are still challenges ahead for those looking to sell unrenovated properties or those facing high rental income gaps between old and new properties; it’s clear that owners need to prioritize investing in energy-efficient upgrades before putting their properties on the market if they want them sold quickly at top dollar.
