Heating plans of the federal government

Downturn in demand for older properties due to heating plans

The German government's heating plans are having an impact on the real estate market. Older existing buildings with low energy efficiency are finding it increasingly difficult. As real estate agents, we already feel a significant decline in demand for older, unrenovated houses, which is expected to intensify due to the general energy discussion. Increased interest rates are no longer the only brake. Also the concern about loss of value and expensive investments - especially with old heaters - hold potential buyers back.

The most important questions on this topic at a glance:

-How to deal with the existing gas or oil heating system?

-Is the change to an air source heat pump sufficient in the long term?

-Which subsidies can I benefit from as a property owner when changing the heating system, where and when?

-Are there enough new heating systems and suitable tradesmen available at all?

Energetic building condition is gaining in importance

According to legislative plans of the German government, from 2024 onwards, if possible, every newly installed heating system is to be powered by 65 percent renewable energies. Then for instance heat pumps, solar thermal systems or hybrid systems from heat pump and gas heating must be inserted. Existing oil and gas heating systems can continue to be operated, and broken heating systems can be repaired. If this is not possible, transitional periods are intended to facilitate replacement. Banks are now also looking more closely at the energy certificate than in the past. That can become the advantage with modern buildings.

The situation remains still the most important criterion

Good reorganized inventory real estates or younger used real estates are more price-stable than unsanierte objects. But the energetic building condition remains only one criterion, on which the value of a real estate measures itself. Location continues to be the most important factor. At very attractive locations will also in the future a badly reorganized real estate clearly more stable in value than a well reorganized object in unattractive situation.

What does that mean for you as an owner or prospective buyer?

As real estate agents it is our task to inform potential buyers and sellers about the current developments on the real estate market and to support them in the decision-making process.

Despite the challenges posed by the planned measures of the federal government and the associated slump in demand for older properties with poor energy values, one can by no means lump all objects together. Particularly in very good locations, unrenovated properties can also maintain or even increase their value. In addition, modern and energy-efficient properties offer a good opportunity to benefit from lower interest rates and subsidies.

Let us examine the issue individually for you and your property or purchase option.

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