Increased need for refurbishment in Germany

The need for renovation in Germany is high. This is shown by a recent analysis by ImmoScout24. 42 per cent of properties have an energy efficiency rating lower than D. The number of refurbished properties has fallen significantly since 2019. The majority of properties only achieve a mediocre rating after refurbishment.

The amendment to the Building Energy Act (GEG) heralds the energy transition in Germany. According to the Renewable Heating Act, the switch to renewable energies will be mandatory when installing new heating systems from 1 January 2024. This will gradually implement a climate-friendly heat supply that is predictable, cost-effective and stable in the medium to long term.

"We are currently still seeing a reluctance to refurbish properties. There are several reasons for this. Firstly, the KfW subsidies were utilised too quickly and secondly, the discussion surrounding the Building Energy Act has caused a great deal of uncertainty. Added to this are the ailing construction industry, high material prices and increased interest rates, which are also driving up costs," says Dr Gesa Crockford, Managing Director of ImmoScout24.

A look at the energy efficiency class of the properties offered on ImmoScout24 shows that a fifth of the properties are labelled as class A or B and therefore have a good to very good energy standard. The average energy efficiency classes C and D account for 38 per cent of the properties on offer. Forty-two per cent of properties are classified as worse than D. The need for refurbishment is therefore high.

The older the property, the higher the proportion of properties that will require energy-efficient refurbishment in the future. For example, 63 per cent of old buildings built between 1850 and 1949 have an energy efficiency rating worse than D. In contrast, only 17 per cent of properties built between 1991 and 2013 have been insufficiently refurbished.

When properties are refurbished to improve their energy efficiency, the majority of them are refurbished to achieve energy efficiency class D and thus fulfil the target set by the EU directive: Properties that were advertised on the portal with energy efficiency class E were 73 per cent refurbished so that they now achieve class D.

(Photo: © Markus Winkler, Pixabay)