For 85% of home buyers, energy efficiency is a priority. However, only 2% of respondents would spend significantly more on properties with a better energy balance. This is according to a survey by the real estate company LRG, which polled more than 700 buyers and sellers.
The study suggests that buyers focus more on the property's operating costs than on pure energy ratings. Accordingly, 36% of respondents would only be willing to accept a higher price if this were offset by lower utility costs. This finding highlights a discrepancy between the desire for energy-efficient properties and the simultaneously limited willingness to make significant additional investments for them.
Cost versus Sustainability
The study results reflect a widespread trend in the property market: while awareness of sustainable living and environmental protection is growing, financial considerations remain decisive for many prospective buyers. The short-term financial benefit in the form of lower monthly outgoings often outweighs the long-term advantages of high energy efficiency, which only pay for themselves over a longer period. This presents property developers and sellers with the challenge of convincingly communicating the added value of energy modernisations or structuring corresponding offers to be market-appropriate.
The results show a clear consumer preference for directly tangible financial relief. Energy efficiency is considered desirable, but primarily on the condition that it does not incur additional financial burdens during the purchase process. For properties that are not up to date in terms of energy, this can mean that owners must either invest in modernisation to remain competitive or accept price concessions.
Implications for the Property Market
This study underscores the need for the property market to develop strategies to make investment in energy efficiency more attractive. This could be achieved, for example, through improved financing models or subsidy programmes that cushion the initial additional costs. This is the only way to close the gap between the desire for energy-efficient properties and consumers' willingness to pay. The report reveals that a rethink in pricing and the appreciation of sustainability criteria is necessary to achieve the goals of the energy transition in the private property sector as well.
- —85% of buyers prioritise energy efficiency when purchasing a home.
- —Only 2% would be willing to pay significantly more for more energy-efficient properties.
- —36% would only accept a premium if it was offset by lower operating costs.
- —The focus is on running costs, less on pure energy ratings.
