News Digest Item
14 Jul 2016

“Market value of energy efficiency: Clear differences between owner-occupied and rented flats”


Efficiency investments in buildings have a significant impact on real estate prices, according to an analysis by the German Institute for Economic Research (DIW). But the impact on rented apartments is smaller than on freehold property, reducing the incentive to invest in efficiency, such as insulation. This underlines the investment dilemma in rented apartments slowing the Energiewende: Owners have to shoulder the cost, but tenants stand to benefit because of lower energy bills. “To resolve the tenant-owner dilemma, policy should aim to help develop investment and financing concepts that serve the interests of both landlords and tenants,” according to the report.

Read the analysis in German here.

For background, consult the CLEW dossier The Energiewende and Efficiency.

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