Building Green Pays Off in the Long Run – Sustainable Homes

Energy efficiency remains a top criteria

In urban environments, gardens and green areas not only help to improve air quality but also act as temperature regulators. In connection with sustainability challenges, green spaces also play a significant role in preserving and promoting biodiversity by providing an important habitat for plants and animals. In urban environments in particular, where natural areas are growing increasingly scarce, green spaces are becoming more and more relevant as a sanctuary for city dwellers as well as for plants and animals.

This development is reflected not only in people’s growing desire to immerse themselves in nature, but also in how they decide where to live. The desire to exist in harmony with nature is also a growing phenomenon, and when choosing a home, people want something that reflects their ecological values. Sustainability and climate protection are no longer marginal issues, but have become key factors when looking to buy a property. Although location was once the decisive factor in determining the value of a property, increased environmental awareness is compelling more and more buyers to include energy efficiency as a factor in their considerations – largely also in view of rising energy costs.

These trends naturally also have a bearing on the real estate market, and potential buyers are increasingly interested in knowing: How eco-friendly is my new home? Energy performance certificates play a central role here, and it has become common practice to ask to see them. There are many reasons for this. Sustainable, green construction and climate protection must all be taken into account. But ecological concerns are only part of the picture, which is why potential homeowners should take economic aspects into consideration too. It is crucial to adopt measures to optimize energy efficiency such as improving insulation, installing heat pumps and using solar energy. Such investments do not only stabilize operating costs, they also increase the value of a property and ensure future viability – which is an important consideration in the event that the property is later sold.

Value enhancement through eco-friendliness

The 2024/2025 Engel & Völkers Residential Real Estate Market Report for Germany indicates that properties with poor energy efficiency lost considerable value between 2023 and 2024. This finding illustrates the importance of a property’s energy status with regard to market value. The report also shows that investors are increasingly interested in existing properties in need of refurbishment, as entry-level prices, including modernization costs, are lower on average than those for new-builds. This development is leading to a rise in demand for properties with a good potential for appreciation, particularly as such properties are often located in sought-after urban locations.

Energy efficiency is no longer a purely technical detail because taking a holistic view of sustainability benefits everyone involved. Those who invest in energy efficiency today create value in the long term – for themselves, for potential buyers and, last but not least, for the environment. Apart from helping to improve quality of life, such investments promote sustainable development that is truly beneficial to all.

Did you know?

Paris is currently attracting international buyers. The real estate market in the French capital has recovered after a period of restraint. Demand is growing, particularly from international investors. Properties in premium locations are achieving top prices of up to €25,000 per square meter. Most popular: exclusive residential areas in the city’s 6th, 7th, 8th and 16th arrondissements. International buyers, primarily from Europe, the United States and Asia, account for roughly 30% of demand.