The European Union (EU) is also focusing on the real estate sector when it comes to climate change. Buildings in the EU are to become climate-neutral by 2050. Around 14 million properties, roughly half of all properties in Germany, are affected. What will owners have to do?
We are currently witnessing the emergence of a two-tier society in Germany: namely between buildings with a good energy balance and buildings with a poor one. This is because energy efficiency is increasingly becoming a factor in the value of a property alongside its location.
This means that even in a good location, properties lose value if they have poor energy performance. This means that if owners want to stop the decline in the value of their property, it is difficult to avoid an energy-efficient refurbishment.
What does this mean for owners?
On the one hand, the EU Buildings Directive provides for changes to new buildings. These are to be built in a climate-neutral way from 2028. A photovoltaic system on the roof is to provide the energy supply.
From 2030 or 2033, existing properties are to have energy efficiency class E or D respectively. This will affect around 14 million buildings in Germany.
When can a C be a G?
As with televisions and refrigerators, there is also a scale for real estate that indicates the energy consumption of the property. It ranges from A+, a very low energy consumption, to H, a very high one. However, there are different scales in the EU. For example, a property with energy efficiency class C in the Netherlands corresponds to class G in Germany.
Implementation of the regulation
The EU directive stipulates that properties with particularly poor energy efficiency should be renovated first. Subsidies such as grants or favorable loans are to be made available for this, as is already the case in Germany, for example from the Kreditanstalt für Wiederaufbau (KfW) or the Federal Office of Economics and Export Control (BAFA).
There are also to be exceptions: The ordinance is not to apply to monuments. In certain cases, social housing is also to be exempt. And buildings that are protected due to their historical or architectural value or technical buildings can also be exempted from the refurbishment obligation.
Significance for the real estate value
In order to know where owners and their property stand in terms of energy efficiency class, they can have an energy requirement certificate issued for around 100 euros. This documents a realistic picture of the energy efficiency of the property.
An energy expert can say which refurbishment measures are sensible and necessary to meet the requirements of the EU directive. A local quality estate agent can say which measures will affect the value of the property and how.
Would you like to know whether an energy-efficient refurbishment is worthwhile before selling or how it affects the value of your property? Get in touch with us! We will be happy to advise you!
Note
For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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