The energy efficiency of real estate has become a central factor in price formation in the residential real estate market in recent years. The price development clearly shows that properties with poor energy ratings lose market value, while energy-efficient real estate remains more stable in price and often achieves higher prices.
Reasons for the Influence of Energy Efficiency on Real Estate Prices
Regulatory Requirements and Societal Change
- Regulatory Pressure: The government continuously tightens the requirements for the energy quality of buildings, e.g., through the Building Energy Act. Buyers and investors must expect that renovation measures for older or energetically poor properties will become mandatory in the future.
- Climate Protection Awareness: The increased environmental awareness leads buyers to specifically search for energy-efficient houses.
Economic Advantages
- Lower Operating Costs: Energy-efficient buildings incur lower heating costs and are thus cheaper to maintain in the long run.
- Better Financing Options: Banks often offer cheaper loans or better terms for energy-efficient real estate.
- Value Stability: Properties with good energy ratings are less affected by value fluctuations.
Market Mechanisms
- Price Differences Between Efficiency Classes: Studies show that the price difference between the best (A/B) and worst (G/H) efficiency classes can be as much as 25–30%.
- Shift in Demand: Buyers increasingly prefer modern, renovated or newly built properties with high energy efficiency.
Current Developments
In 2025, real estate prices are expected to stagnate at a high level overall. Particularly noticeable is the decline in prices for single-family homes in large cities (–9.5% compared to the previous year), while declines are also observed in rural areas (–6.7%). At the same time, the price gap between very efficient and less efficient buildings remains large: In the first quarter of 2024, it was around 25%, according to JLL, after having been even larger at times.
The trend towards valuation based on energy standards is expected to continue – not only due to regulatory requirements but also because of the increasing awareness of sustainability and cost-effectiveness among buyers.
Conclusion
Energy-efficient real estate offers a decisive competitive advantage in the market: they achieve higher prices, offer better financing options, and remain more stable in value in the long term compared to unrenovated or energetically weak properties. For all market participants, this means that those who invest or sell today should definitely consider the energy quality of their property – for both economic and ecological reasons.