The Impact of Energy Labels on Real Estate Market

Uncover the influence of energy labels on real estate sales and how it can benefit home sellers.

A recent investigation by the national land registry Kadaster has revealed a growing trend in the real estate market: homes with higher energy labels are selling more quickly and for higher prices. According to Kadaster, the sale of homes with a high energy label has been on the rise, with over 8,500 homes with an A energy label sold in the first few months of 2020, and a further 10,400 in the second quarter of the year. Conversely, the sale of homes with lower energy labels, specifically F and G, has seen a decline, with 5,700 transactions in the first quarter of 2020 dropping to 4,000 in the second quarter of 2023.

Furthermore, Kadaster reports that the price difference between homes with the highest and lowest energy labels has significantly increased. In the first quarter of 2020, the price difference between energy labels A and G was 60,000 euros, but has now risen to up to 140,000 euros. This indicates that people are willing to pay more for homes with a high sustainability rating. However, overall home prices have experienced a slight decline at the beginning of the year, with the most pronounced fall seen in houses with energy labels F and G. Kadaster also notes that prices for apartments with more than 80 square meters, especially those with energy labels F or G, have seen the most significant decrease. On the other hand, small apartments with high energy labels have shown less sensitivity to price changes.

In conclusion, the findings from Kadaster's investigation suggest that homes with higher energy labels are in greater demand and command higher prices in the real estate market. This trend reflects a growing awareness and preference for sustainable and energy-efficient homes among buyers.