Real Estate and Energy Performance of Dwellings

A survey concerning the French and their concern towards the energy performance of dwellings was carried out.

The president of a real estate network states that the energy performance of dwellings has a notable impact on the value of a property during a transaction and that it now needs to be paid greater attention.

Indeed, more than 80% of owners are aware that energy performance has an influence on the value of their property for sale, and more than 60% of tenants are prepared to pay higher rent for a less energy-intensive dwelling (a rent increase of around 8%).

However, this survey demonstrates that nearly half of owners (47%) do not feel concerned about the consequences of poor energy performance. Most of them admit to never having had an Energy Performance Diagnosis (DPE) carried out, and almost none of them consider having one done.

Nevertheless, prospective buyers consider that energy performance is an increasingly important criterion, for reasons of savings and comfort. It is notably true that buyers attach more importance than before to energy expenditure in their budget.

Renovation: mandatory transition to action

To increase the value of one’s property, it is therefore necessary to consider carrying out works to improve energy performance. This investment indeed appears to be very wise and advantageous for both the buyer and the seller.

Philippe Pelletier, the president of the Sustainable Building Plan, supports the idea of raising awareness among sellers to have energy performance diagnoses carried out and buyers to undertake energy performance improvement works: “The energy transition bill includes energy performance in the criteria for decent housing. In the long term, we could decide to remove from the market those dwellings that are too energy-intensive. Similarly, we are moving towards an obligation to renovate before any transfer. Property professionals therefore have a role to play and the experience on how to include renovation at the time of the transaction is interesting. However, the question that remains is: who will pay for these works? The buyer in part? The seller alone? For my part, I propose a fiscal approach with differentiated transfer duties depending on whether renovation has been carried out. A bonus/malus system set by local authorities.”

This dynamic could give new impetus to the property market. It would enable job creation in construction, sellers to sell more quickly and buyers to be fully satisfied with their first purchase.