Renovation is often expensive, but can be worthwhile when selling the property due to a higher purchase price. It depends on the individual case and should be assessed in advance by a professional.

What the EU Buildings Directive means for owners
We are currently witnessing the emergence of a two-tier society in Germany: namely, between buildings with good energy ratings and those with poor energy ratings. This is because energy efficiency is increasingly becoming a factor in determining the value of a property, alongside location.
This means that even properties in good locations lose value if they have poor energy ratings. In other words, if owners want to stop their property from losing value, they will find it difficult to avoid energy-efficient renovation.
What does this mean for owners?
On the one hand, the EU Buildings Directive provides for changes to new buildings. From 2028, these must be constructed in a climate-neutral manner. A photovoltaic system on the roof should provide the energy supply.
Existing properties must have energy efficiency class E or D by 2030 or 2033. This affects 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+, which is very low energy consumption, to H, which is very high. 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. To this end, subsidies such as grants or low-interest loans are to be made available, as is already the case in Germany, for example from the Kreditanstalt für Wiederaufbau (KfW) or the Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA).
There will also be exceptions: the regulation will not apply to historic buildings. In certain cases, social housing will also be exempt. Buildings that are protected because of their historical or architectural value, or technical buildings, may also be exempted from the renovation requirement.
Significance for property values
To find out where they and their property stand in terms of energy efficiency class, owners can have an energy performance certificate issued for around $100. This document provides a realistic picture of the property's energy efficiency.
An energy expert can advise on which renovation measures are sensible and necessary to meet the requirements of the EU directive. A local quality real estate agent can advise on which measures will affect the value of the property and how.
Would you like to know whether energy-efficient renovation is worthwhile before selling or how it will affect the value of your property? Contact us! We will be happy to advise you!
Note
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as 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 case.