A detailed look at the German real estate financing market, based on data from Europace AG, reveals a clear trend among young buyer groups: those under 25 finance properties in the lower energy efficiency classes F, G, or H at a rate of 35.2 per cent. This proportion declines slightly with increasing age to 32.3 per cent for 26- to 30-year-olds and 31.2 per cent for 31- to 36-year-olds. Concurrently, the proportion of energy-efficient properties in classes A+ and A rises from 10.9 per cent for the youngest buyers to 16.1 per cent for the 26 to 30 age group and 18.7 per cent for 31- to 36-year-olds.
This development correlates with available financial headroom. While those under 25 finance properties for a median of approximately EUR 251,000, this amount increases to around EUR 333,000 for buyers between 31 and 36 years of age. The data do not show a direct causal relationship between the financing sum and the choice of property, but they do demonstrate that a higher price level enables the acquisition of more energy-efficient properties. On average, the youngest buyer groups finance properties built in 1963. Energy-efficient properties are primarily newer properties; only about 2 per cent of properties built before 1949 achieve classes A+ or A, whereas for properties built from 2020 onwards, this proportion is almost 69 per cent.
A significant proportion of purchases by those up to 36 years of age include a budget for modernisation measures. For those under 25, this is 34.3 per cent, for 26- to 30-year-olds it is 35.1 per cent, and for 31- to 36-year-olds it is 34.8 per cent. The planned amounts for this are between approximately EUR 40,000 and EUR 48,000 at the median. Relative to the purchase price, the share is highest for the youngest buyers at 19.3 per cent, while it is 17.6 per cent for 31- to 36-year-olds. Especially for properties in energy efficiency class H, around 63 to 64 per cent of buyers in all mentioned age groups plan a modernisation budget. Stefan Münter, Board Member and Co-CEO of Europace AG, noted that Gen Z and Millennials have adapted their purchasing behaviour to the more challenging conditions by acquiring existing properties and making them future-proof through modernisation.
The type of property only partially influences its energy condition. For condominiums, 15.0 per cent of those under 25 are in classes F, G, or H, while for 31- to 36-year-olds it is 13.2 per cent. For detached and semi-detached houses, the corresponding difference is 54.0 to 42.1 per cent. If one considers the year of construction, this difference is reduced but does not disappear completely.
A+-properties cost a median of approximately EUR 465,000, while properties in class D record around EUR 257,000. This difference represents the market but does not constitute an isolated price for energy efficiency, as A+-properties are typically newer and also differ in terms of property type, size, and location. A cross-check by VALUE AG, based on listing data, confirms the magnitude of this raw difference. The price per square metre is more indicative, decreasing from approximately EUR 3,919 for A+ to around EUR 1,877 for H. The price gradient is evident, but a complete analysis requires consideration of the year of construction, living area, and property type. An independent analysis by VALUE AG based on listing data also identified a first weak heat signal: in locations more exposed to heat, the relative price level compared to 2021 was approximately 1.4 per cent lower per standard deviation of heat exposure — about nine additional hot days annually. This signal refers to the location and not the energy class.
