Trend reversal in unrenovated houses: prices are rising again

Trend reversal in unrenovated houses: prices are rising again

The fall in prices for unrenovated houses appears to have slowed, as an analysis by Jones Lang LaSalle (JLL) shows. Previous fears about high energy costs and uncertainty about heating laws led to a sharp fall in prices. Experts like Sören Gröbel from JLL Germany explain that the costs for energy-saving renovations are now deducted almost directly from the purchase price. It should be noted that construction costs have stabilized and are even declining slightly in some areas. Financing costs have also stabilized after a previous increase, which has stopped the price decline for the time being.

The differences in the prices of apartment buildings with the best and worst energy efficiency classes have narrowed. In the first quarter of 2024, the average price difference was 25.1 percent compared to 26.9 percent in the final quarter of 2023. In addition, the analysis also determined the price discount for buildings in the best energy efficiency classes. The study shows that the drop in prices for unrenovated houses, which began in the second half of 2021, has stopped since spring 2023.

An increased focus on low energy consumption of properties by buyers is due to the increase in energy prices and the uncertainty caused by new legal requirements. It is assumed that the price differences between energy-efficient and older buildings may increase. Higher price discounts could be observed, particularly in rural regions where energy renovation costs may not be profitable for landlords. This could lead to a further widening of the gap between old and new properties.