Residential buildings with high energy consumption lose value, warns the financial expert.

Residential buildings with high energy consumption lose value, warns the financial expert.

According to service provider Jones Lang Lasalle (JLL), residential buildings with high energy consumption will continue to lose value compared to energy-efficient properties. In the third quarter, houses in the lowest efficiency classes G and H were on average 28.7 percent cheaper than buildings in the best classes A and A+. This emerges from an analysis of around 5,000 offers for sale of apartment buildings. Although the downward trend has slowed over the course of the year, JLL experts do not predict an end to this development. In March of this year, the previous highest level of energy-related price reductions was reached at 28.1 percent. Two years ago, before the outbreak of the Ukrainian war and the associated energy price inflation, the price difference between the best and worst energy efficiency classes was 11.6 percent.

Sören Gröbel, head of market research at JLL, sees the reasons for this development in both the rising costs of renovations and loans as well as the increasingly strict energy regulations and the uncertainty about future federal laws. To date, comparatively few apartments in Germany have been renovated for energy efficiency; housing experts estimate that this proportion is only around one percent of the total housing stock. Roman Heidrich, senior real estate valuation specialist at JLL, predicts that owners of energy-poor properties will have increasing difficulty renting, selling and financing their properties in the future.

Source:According to a report by www.faz.net