Zoom Image

Multi-family dwellings in Berlin: Market value increasingly determined by energy efficiency

Photo: Monika Skolimowska / dpa

According to a study, expensive energy and uncertainty about the planned heating law are leading to growing price reductions for houses with a poor energy balance. The gap in market value between very energy-efficient residential properties and buildings with a poor energy balance continues to widen, according to a new analysis by real estate specialist Jones Lang LaSalle (JLL), for which around 5000,30 supply data from apartment buildings were evaluated. For owners, the price reductions have now increased to almost <> percent at the peak. Previously, the »Handelsblatt« had reported on it.

In the first quarter, according to JLL, the asking prices for apartment buildings of the worst energy classes G and H were on average around 28 percent below those of the best energy classes A and A+. A year earlier, the difference was a good fifth (21.6 percent), according to the analysis published on Friday.

Significantly gained in relevance

Compared to the previous quarter, the price discount for properties with the worst energy efficiency has thus risen noticeably by around 3.6 percentage points from 24.5 percent at that time. The discount has also increased by around 2.6 percentage points on average across the individual energy efficiency classes, according to JLL.

"With the sharp rise in energy prices in 2022, the topic of energy efficiency of buildings has once again become significantly more relevant to investors," said JLL expert Roman Heidrich. On the one hand, lower rental income and greater problems with sales are to be expected in the case of energy-impaired properties. On the other hand, the planned law on the replacement of heating systems has sparked a heated discussion about the future viability of existing properties that are particularly poor in terms of energy efficiency. The uncertainty is reflected in the demand for such objects and thus in the price.

Other brokers had also recently observed that not only the increased interest rates are driving real estate buyers, but also increased energy efficiency requirements under the Heating Act. Older existing buildings with low energy efficiency would have an increasingly difficult time – especially since the real estate market is already under pressure and prices are crumbling.

According to Helge Scheunemann, Head of Research JLL Germany, there is much to suggest that price differentiation by energy class is a permanent trend. On the one hand, the building sector is particularly relevant for the climate targets. "On the other hand, we expect construction costs to remain at a high level in the medium term." The sharp increase in construction costs has led to higher costs for energy-efficient renovations. This is reflected in the market price, says Scheunemann.