A new study by real estate experts has revealed that properties with poor energy performance, such as older, unrenovated houses, have seen a significant decrease in value in the past year. However, this trend seems to have stopped for one exception – newer, renovated houses are seeing an increase in value.
The stabilization of property values is mainly due to the fact that construction costs and financing costs have stabilized after a rise in interest rates. Additionally, the federal government’s law on heating replacement has caused uncertainty in the market for single- and two-family homes. Owners must reduce prices significantly more when selling, as buyers would bear higher energy costs if they choose to live in the property themselves.
Selling unrenovated properties remains difficult, especially in rural areas where buyers may struggle to offset the costs of expensive energy-saving renovations with lower rental income. The 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 happening which signals a positive shift in the real estate market. It is becoming clear that energy efficiency is becoming a key factor in property valuation and purchasing decisions.
