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Directive on Energy Efficiency of Buildings: How the Real Estate Market Can Change in a Few Years

Directive on Energy Efficiency of Buildings How the Real Estate Market Can Change in a Few Years - Directive on Energy Efficiency of Buildings: How the Real Estate Market Can Change in a Few Years

The concern for sustainability, energy saving and emissions reduction reaches all areas, including the real estate sector. In this scenario, the European Union finalizes a new directive on the energy efficiency of buildings. It plans to introduce significant changes not only in new construction but also in existing homes.

Experts predict essential changes in the real estate market in the coming years, especially regarding the rehabilitation of homes and the revaluation -or not- that properties can experience.

Keys of the Energy Efficiency Directive

The regulation has to complete some procedures, so it will not get approved before 2024. In addition, member countries will have two years to transpose the Energy Efficiency Directive into their national legal system. However, its main lines are already known.

The goal is to achieve climate neutrality by 2050; that is, a housing stock with no carbon footprint and energy efficiency. But first, there is a schedule to meet. In the case of buildings for residential use, the key dates would be the following:

• As of January 1, 2028, all new residential buildings must be zero emissions.
• In the case of residential buildings already built, on January 1, 2030, they must have an E on the energy classification.
• On January 1, 2033, these properties should have a D classification.
• From 2025, there will be another obligation: the Building Renovation Passport. It is an action plan for the rehabilitation of buildings in several phases.
• From 2027 for large buildings and 2030 for all, the energy certification must include a global warming indicator. It'll collect the carbon footprint of the building throughout its useful life.

On the other hand, the Energy Efficiency Directive also indicates that member states must establish plans to ensure that the entire housing stock is decarbonized and efficient by 2050.

How the Energy Efficiency Directive can affect the real estate market

In an ageing housing stock such as Spain's, the Energy Efficiency Directive will inevitably have consequences. On the one hand, those properties that adapt earlier to the sustainability criteria may increase their market value.

Besides, another consequence will be that energy-efficient properties will have a much faster exit from the sale market. Actually, this is an aspect that many buyers already value because of the price of energy.

But this Energy Efficiency Directive may affect other levels. The adaptation of existing properties will have a cost. It means it might be necessary to mobilize public funds and offer subsidies to achieve energy efficiency. And it is even possible that appear new forms of financing for this matter.

And it would still be necessary to mention the possibility that national regulations establish any sanction in case of non-compliance with the specified deadlines to adapt to the efficiency criteria.

Therefore, in a sensitive market like the property one, energy efficiency could become one of the first criteria when purchasing a second-hand home. Above all, it could help save on electricity bills and to comply with the requirements of this European Energy Efficiency Directive (avoiding having to carry out improvements or rehabilitation to achieve a specific energy rating).

Therefore, if you are considering investing in the real estate market or buying a property as your habitual or second residence, it is fundamental to check the energy certification of the property. At Spainhouses.net, you will easily find your dream home among a broad property offer. All the listings provide detailed information on their features.

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