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For older, unrenovated buildings, buyers are increasingly factoring in the costs of energy-efficient modernization, such as insulation, new windows, or the replacement of fossil-fuel heating systems.
Legal requirements such as the Buildings Energy Act (Gebäudeenergiegesetz) further increase the pressure to renovate, which is reflected in the valuation as a maintenance backlog or a renovation discount.
Conversely, buildings with a very good energy efficiency rating, for example due to a heat pump and photovoltaic system, can achieve a noticeable value advantage over comparable, unrenovated properties in the current market environment.
The mandatory energy performance certificate provides initial indications in this regard, but does not replace a detailed technical inspection of the actually installed systems and insulation standards on site.
Especially for larger renovation projects, it is worth looking into possible funding programs, as making use of them can indirectly affect economic viability and therefore also the valuation.