How much does the energy class matter in valuing a property?
Residential buildings are responsible for 12.5% of greenhouse gas emissions in Italy, and improving the energy efficiency of buildings is a priority in the fight against climate change. But the impact of efficiency is not only environmental: it also directly affects the value of homes.
A study by the Banca d’Italia, entitled ‘The capitalization of Energy Labels into House Price. Evidence from Italy’, analysed thousands of property listings to determine the weight of the energy certificate on sale prices. The results are clear: homes with a better certification are sold at higher prices, and this trend is strongest in cities where energy costs are higher or where regulations impose stricter standards.
For example, in some provinces of Northern Italy, characterised by harsh winters and high heating costs, the gap between a class A property and a class G one can exceed 40%. In the South, where the climate is milder and thermal insulation is less crucial, the difference is generally below 10%.
But the value of a home is not just a matter of purchase price: running costs over time must also be considered. A class G home can have bills that are 50-70% higher than a class A one, and this is an ongoing burden for the owner.
Is investing in a green home really worthwhile?
While it is true that buying a class A home means a larger initial outlay, it is equally true that energy savings and the property’s value over time can justify the expense. However, before investing in a green home, it is worth considering a few points:
- Available incentives: government bonuses can significantly reduce the cost of renovating a property to bring it up to a higher energy class. Without incentives, the payback period for the investment gets longer.
- Length of stay: if you plan to sell the property within a few years, it may not be worth spending more on a highly efficient home. If, on the other hand, the purchase is long-term, savings on bills can offset the initial surcharge.
- Local market: in some cities energy efficiency is a key factor in valuing properties, in others less so. Studying the trend in your area is essential to make an informed choice.
Moreover, growing attention to sustainability and new European regulations are making inefficient properties less and less attractive. In future, those who own a low-class home may be forced to renovate to avoid seeing its value collapse.
The future of the property market is increasingly green
The market is already rewarding low-consumption properties, and the trend looks set to strengthen. European regulations are pushing ever more towards high-performance buildings, and those who buy a class A home today may find themselves in an advantageous position in the coming years.
But the key message remains the same: buying an energy-efficient home is not just an ecological choice, but an investment that can pay for itself over time. With lower bills, reduced emissions and a rising market value, green homes are not only the future, but increasingly the present too.
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