More houses to go on sale in Spain?
The European Union has recently approved changes to the Energy Performance of Buildings Directive (EPBD), aimed at enhancing energy efficiency and reducing carbon emissions. While this is a positive step towards a more sustainable future, the new regulations could significantly impact the marketability and value of Spain’s ageing housing stock.
So, could the new energy efficiency legislation fuel an increase in the number of properties being put on the market for sale in Spain?
The answer is yes, and here is why:
Selling your home?
High cost of complying with new regulations
The new regulations may force some homeowners in Spain to upgrade the energy performance of their properties, and such improvements could entail significant costs. Renovations might include insulating ceilings, walls, and floors, replacing wood burners with pellet stoves or other more efficient heating systems, installing double-glazed windows, or even adding solar panels.
Future decrease in demand for energy inefficient homes
Energy performance will play an increasingly important role in property purchases in the future. Buyers are not only motivated by a desire to contribute to a more sustainable housing sector in Spain but also by the lower maintenance costs and higher resale value of energy-efficient properties. Consequently, demand for older, less energy-efficient properties will likely decrease over the next few years.
Strong demand currently favouring sellers
The real estate market in Spain is currently favourable for sellers. There is strong demand from both domestic and international buyers, so selling now would allow homeowners to capitalize on this market strength. Furthermore, the proceeds from selling can be invested in newer, more energy-efficient properties or other investment opportunities that may offer better returns in the long term.
Rental properties also affected
Rental property owners in Spain must also have a valid Energy Performance Certificate (EPC). This document classifies the energy efficiency rating of a property, with “A” being the most efficient and “G” being the least.
The new EU regulations will require all properties with a “G” rating to be upgraded to an “F” by 2030 and an “E” rating by 2033 in order to be legally eligible for rental.
Conclusion
The number of properties being put up for sale in Spain could rise following the EU’s approval of the revised Energy Performance of Buildings Directive. With homeowners in Spain potentially facing significant costs to upgrade the energy efficiency of their homes to comply with the new regulations and buyer demand for older properties likely to diminish over the next few years, property owners in Spain may decide that now is the time to sell, especially given the strong domestic and international demand that is still driving the real estate market in Spain.
