Renovation Consulting – Residential & Commercial
Energy-efficient renovation with a strategy
Energy-efficient renovation of multi-family residential and mixed-use buildings has evolved from an optional measure to an economic necessity, driven by the growing importance of ESG criteria. Strategic planning today not only preserves the value of your property but also unlocks attractive return potential.
Leveraging potential
Properties with poor energy efficiency ratings are increasingly subject to price reductions in the market. A comprehensive renovation not only improves the energy efficiency rating but can also achieve a sustainable value increase of up to 30 percent.
Efficient insulation, modern windows, and new heating systems can cut energy consumption by up to 80 percent. This enhances the attractiveness and rental potential of the units, while tenants benefit from lower utility expenses.
The Building Energy Act (GEG) and European legislation impose increasingly stringent requirements. Certain renovation measures become mandatory during ownership transfers or major refurbishments.
Institutional tenants and businesses increasingly require ESG-compliant spaces. Private tenants also favor apartments with low utility costs. Units in renovated multi-family buildings are generally in high demand.
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Finding the right balance between ecology, law, and return on investment
A detailed property survey (e.g., through an individual renovation roadmap, iSFP) is essential to identify the actual renovation needs and uncover hidden potential.
It is essential to evaluate which measures (e.g., facade insulation, heating replacement, window upgrades) offer the best returns through rent adjustments or reduced operating costs.
Federal and state programs offer numerous attractive incentives (e.g., through KfW or BAFA) for energy-efficient renovations. These should be integrated into financial planning early to reduce investment costs.
An energy-efficient renovation is a key step in preserving and increasing the value of your residential or mixed-use building. Your local Engel & Völkers Commercial office serves as your personal point of contact throughout the process.
Interesting facts
A Brown Discount refers to the price reduction that often applies in transactions when properties with poor energy efficiency ratings (e.g., G or H) are sold. Investors and banks already factor in the future mandatory renovation costs when pricing these properties.
The individual renovation roadmap (iSFP) is a detailed property analysis funded by the government (BAFA) and conducted by a certified energy consultant. It outlines which measures should be taken and in what order to achieve the best results. An iSFP is often a prerequisite for obtaining funding and securing financing approval from banks.
As funding programs are constantly changing, consulting with an up-to-date market overview is worthwhile. Currently, BAFA provides grants for individual measures such as heating system replacements, while KfW offers low-interest loans for efficiency house renovations.
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