Goodwill up to 76%

The benefits of energy upgrading of homes

There are multiple potential benefits from energy upgrading of homes, especially those still in the two lowest energy certificate categories. According to an analysis by ReDataset, the Data & AI department of Resolute Cepal Greece (RCG), depending on the area and the existence or not of a sufficient stock of "green" homes, very significant price differences can arise, reaching even 76% in favor of the energy upgraded property, compared to the non-upgraded one in the same area.

Of course, notes a report in Kathimerini, the difference in price is not only due to the category of energy certificate, as energy efficient properties tend to be of newer construction, which also contributes to the rise in price. However, no one denies that a renovated and energy-efficient house can secure a significantly higher selling price. In the centre of Athens, 34.5% of the houses for sale belong to the two lowest energy certificate categories. The asking price is 2,020 euro/sqm compared to 3,330 euro/sqm for apartments in the higher categories (from B and above), which is almost 40% more expensive.

Even more significant are the differences between "green" properties and those in the two lowest categories, in areas of the western and southern suburbs. For example, in Peristeri, a 'green' house sells for 2,870 euros/sqm, or 76% more expensive than an unrated apartment. In Egaleo the discrepancy reaches 70.5% (2,760 euros/sqm vs. 1,620 euros/sqm).

Similarly, in the municipality of Elliniko - Argyroupoli the difference between a "green" house and an older and non-upgraded one approaches 70% (5,000 euros/sqm vs. 2,940 euros/sqm).

However, another factor should be taken into account that can act as an incentive for the implementation of energy upgrade projects and in particular the replacement of heating systems, oil or gas, with newer technologies that do not use fossil fuels, such as heat pumps.

From 1 January 2027, a new EU regulation will come into force, under which fossil fuels - petrol, diesel, natural gas and any other polluting fuel used in buildings for heating, road transport or small industries - will be subject to a new pollutant tax. The aim of the measure is to reduce pollutant emissions by 42% by 2030 compared to 2005.

Essentially, that is, the supply of heating oil or natural gas in the case of housing will have additional costs, precisely because of this new pollutant tax. This development is expected to make the replacement of old heating systems a top priority for any energy upgrade, as this will not only save the user energy by using new technologies, but also avoid the pollutant tax.

If the upgrade is accompanied by insulation and replacement of old frames, the benefit will be even greater, as the property will also have a lower energy demand for heating or cooling.

According to Green Tank research estimates, the greatest risk from this new measure is posed by the country's energy vulnerable households, estimated at 1.15-1.17 million or 26.5% of the total.

Based on the recent building census of 2021 conducted by ELSTAT, 1.94 million dwellings, corresponding to almost 1/3 of the country's total building stock, were built between 1945 and 1980 and are in need of extensive upgrades, as they lack insulation and modern heating systems.