Energy performance as a value factor: significant price premiums for efficient residential buildings

Energy efficiency has become a decisive price factor for residential property. While poor energy performance results in significant price discounts, particularly efficient buildings achieve much higher prices. Across Germany, flats in the best energy-efficiency class, A+, cost around 20 per cent more on average than comparable class D properties with a medium energy standard. This is the finding of a recent analysis by the online marketplace immowelt on the influence of energy-efficiency class on asking prices for houses and flats advertised on immowelt.de in 2025.

The analysis examined the extent to which average asking prices in each energy-efficiency class differed from the medium class D standard. This is the most common standard among residential properties offered for sale in Germany. The calculation determined the precise influence of the energy standard on the asking price, while deliberately excluding other factors such as location, size and features to make the effect of energy efficiency clearly visible.

“Energy efficiency has long since become a central driver of value in the property market,” says immowelt Managing Director Theo Mseka. “Buyers pay closer attention than in the past to ongoing energy costs and potential renovation expenditure. Particularly efficient buildings therefore achieve significant price premiums, while properties with poor energy performance frequently attract buyers only at lower entry prices.”

Inefficient houses discounted by up to 17 per cent

A poor energy-efficiency class has a particularly pronounced effect on asking prices for houses. On average, homes in the lowest energy-efficiency class, H, are offered for around 17 per cent less than comparable houses meeting the medium class D standard. Houses in classes G and F also show significant price discounts.

In general, the further a house’s energy performance deviates from the medium standard, the greater the effect on its asking price. There are correspondingly significant premiums at the upper end of the scale. Across Germany, houses in energy-efficiency class A+ cost around 15 per cent more on average than homes with a medium standard. Houses in classes A and B also achieve noticeable price premiums.

Flats: up to 20 per cent more for the best energy performance

Energy efficiency also has a significant effect on the asking price of owner-occupied flats, although the discounts for inefficient properties are somewhat smaller than for houses. Across Germany, flats in the poorest energy-efficiency class, H, are offered for around 9 per cent less than comparable class D flats.

One reason may be that flat owners generally share the cost of energy-efficiency renovations through their owners’ association, making the financial burden on an individual buyer smaller than for a detached house.

Nevertheless, flats in particularly efficient buildings also command a clear premium: class A+ flats cost around 20 per cent more on average than comparable properties with a medium energy standard. Flats in classes A and B are offered at noticeably higher prices as well.

Price trends: efficient properties more stable

The growing importance of energy efficiency is also apparent in price trends since interest rates rose and the energy crisis began in 2022. Although residential properties with high energy efficiency initially experienced falling asking prices along with the rest of the market following the rise in interest rates, they subsequently recovered much faster.

Particularly inefficient buildings came under greater pressure during the market phase following the 2022 increase in interest rates. In addition to higher financing costs, rising energy prices and the debate about stricter energy requirements played a part. Sellers therefore frequently had to accept larger price reductions.

At the same time, such properties remain a possible route into the market for many buyers. The lower purchase price may enable them to acquire a property and carry out the necessary energy-efficiency renovations at a later date.