DeutschKey statements at a glance
- Price discount for poor energy efficiency: 20-30% of the sales price – not a matter of negotiation, but market practice
- 70-80% of sellers gave no specific thought to energy efficiency before going to market
- The problem only becomes apparent late: when interested parties ask about electricity and heating bills and the high numbers become a bargaining chip
- Payback runs through two channels: lower operating costs PLUS higher sales price
- Since 2022, the valuation logic has changed fundamentally: CO2 emissions have become a direct price factor (each kg of CO2/m²/year reduces the price by 36 cents)
In Styria, 45 percent say energy costs are the biggest challenge. In Lower Austria 43 percent. In Carinthia around 40 percent.
The worry is there. Massively so.
But there is a gap between concern and action. An expensive loophole.
Why owners underestimate the impact on the sales price
I accompany real estate sales. At the same time, I invest in real estate myself. This dual perspective reveals a recurring pattern: owners systematically underestimate how much energy efficiency influences the sales price.
Of the ten owners who come to us, seven to eight have not given energy efficiency any serious thought beforehand. Not really. Not specifically.
They know that heating is expensive. They are annoyed about the electricity bill. But they do not calculate what that means when it comes to selling.
The problem only becomes apparent late in the process. When interested parties ask about previous electricity or heating bills. When those numbers are on the table. High. Unvarnished.
Then a negotiation detail becomes a massive lever.
The pattern: 70-80% of owners do not calculate what energy efficiency means when selling. The problem only becomes apparent when interested parties ask about electricity and heating bills – then a detail becomes massive negotiating leverage.
How energy efficiency is reflected in the sales price
The numbers are brutally clear.
The average price reduction for apartment buildings with the worst energy efficiency classes G and H is nowaround 27 per centcompared to buildings with top grades A or A+.
27 per cent. Not 5. Not 10.
For Austria, the numbers are similarly dramatic: the price reduction for class B compared to the top efficiency class A is on average 11 per cent. Compared to classes C and D there areup to 30 per cent.
This is not a theory. This is market practice.
As an investor, I calculate differently than as a sales representative. I see both sides. When I buy a property, I factor the energy costs directly into my asking price. Not as a nice detail. As a hard factor.
An old building with a heating requirement of 100-200 kWh/m² per year costs me massively more annually than a new building with less than 50 kWh/m².I capitalise this difference backwards into the purchase price.That is exactly what all buyers do. Consciously or unconsciously.
Key point: The price discount for inefficient properties is 20-30% – not as a scope for negotiation, but as market practice. Buyers capitalise energy costs directly into their asking price.
Why the payback calculation "It never pays off" is wrong
Owners often say: "A renovation never pays off. It will take 20 years until I recoup the costs through energy savings."
This calculation is incomplete.
It only takes running costs into account. Not the resale value.
Since 2021, when energy prices rose sharply for the first time, the value of properties with poor energy performance has been falling continuously. The price difference in summer 2021 was still around 11 per cent. It has now stabilised at over 20 per cent.
This is not a short-term phenomenon. This is a structural market shift.
When you invest in energy efficiency, you do not just save on heating costs. You secure the value of your property. You make it sellable. At a realistic price.
The payback runs through two channels: lower operating costs plus a higher selling price. Together, the payback period is significantly shortened.
The insight: Payback runs through two channels – lower operating costs PLUS higher selling price. If you only calculate energy savings, you are missing half of the equation.
How buyers evaluate energy efficiency today
The Austrian population is sensitised to energy efficiency. When buying a flat, the topic has moved up the agenda.
Markus Dejmek, Austrian head of ImmoScout24, confirms: increased energy costs and climate change are leading to a rethink among buyers.
A study by Wüest Partner Germany shows the mechanics behind this. Between 2022 and 2025, 766 apartment buildings in Berlin were examined. The correlation coefficient between CO2 emissions and sales price was -0.36 in 2024.
Each additional kilogram of CO2 per square metre per year reduces the price by 36 cents.In 2022, this connection was barely measurable. The correlation coefficient was -0.08.
In just two years, buyers' valuation logic has fundamentally changed.
I see this at viewings. Interested parties used to ask for the energy certificate. Today they exclude properties with poor ratings from the outset.
The energy certificate has gone from a negotiation detail to an exclusion criterion.
The shift: In just two years (2022–2024), CO2 emissions became a direct price factor. The energy certificate has gone from a negotiation detail to an exclusion criterion.
Why funding remains unused
Austrians see the most urgent need for renovation in measures to increase energy efficiency (28 per cent) and to replace heating systems (23 per cent).
The knowledge is there. The funding is there.
But there is a structural hurdle between awareness and implementation: the complexity of the decision.
Owners do not know where to start. Which measure delivers what. Which subsidy fits which project. How long does implementation take?
This uncertainty leads to passivity.
As an investor, I have learned: you need a clear decision-making framework. Not a perfect solution. A feasible first step.
The funding landscape is complex. But navigable. You just have to translate it into your specific situation.
The obstacle: It is not a lack of awareness that blocks implementation, but the complexity of the decision. Owners do not need a perfect plan – just a doable first step.
Which measures pay off and when?
Not every energy efficiency measure pays off equally well.
From an investor's perspective, there are measures that are worthwhile even if the timing of the sale is unclear:
Insulation of the top floor ceiling.Relatively cheap. Can be implemented quickly. Immediate effect on heating costs.Replacing the heating system from oil or old gas to modern systems.High subsidies. Significant improvement in energy class. Strong effect on buyer perception.Window replacement with single glazing.Massive improvement in quality of living. Noticeable reduction in heating costs. Good payback.Other measures are more complex:
Complete facade insulation.High costs. Long payback. Only makes sense for long-term personal benefit or if the sales price increases significantly as a result.Photovoltaic systems.Calculate the savings in electricity costs. But: exercise caution when evaluating for a sale. Buyers often calculate differently from sellers.The decision depends on your situation. Are you selling in two years? Or will you stay for ten years?
It depends. But there is a logic behind it.
The logic: Measures with low costs and a quick effect (top floor ceiling insulation, heating replacement, window replacement) almost always pay off. Comprehensive renovations only with a long-term horizon.
Why waiting becomes more expensive
Buildings are responsible for around 16 per cent of CO2 emissions in Austria.
The legal requirements are continually being tightened.
If you wait, you lose twice. Firstly, the requirements are increasing. Secondly, the longer you wait, the lower the value of the property will be.
I see this as an investor: the gap between efficient and inefficient real estate is widening. Not narrowing.
Owners who want to "wait it out" are putting themselves in a worse position.
The market punishes inaction. Not immediately. But continuously.
The dynamics: The gap between efficient and inefficient real estate is widening. If you wait, you lose twice – increasing requirements plus decreasing value.
When investments in energy efficiency pay off
Selling in 2–3 years
No blanket promises. But understandable logic.
Invest in measures that improve the energy class and are immediately visible. Heating replacement. Window replacement for old windows. Insulation of the top floor ceiling.
Avoid expensive complete renovations whose costs you will not recoup in the sales price.
Own use for 5–10 years
Calculate the payback based on energy cost savings plus an increase in value. More comprehensive measures will be of interest. Facade insulation. Photovoltaics.
Long-term letting
Energy efficiency becomes a competitive advantage. Tenants now count operating costs like a 13th month's rent.
A study by ImmobilienScout24 from 2024 shows: houses and flats with high energy efficiency achieve on average 23 per cent higher prices than comparable, unrenovated properties.
23 per cent. That is no small bonus. This is a massive market advantage.
The calculation: Energy-efficient properties achieve 23% higher prices – not a bonus, but a massive market advantage because tenants treat operating costs like a 13th month's rent.
Frequently asked questions
When does poor energy efficiency become a problem in the sales process?
The problem only becomes apparent late – when interested parties ask about previous electricity or heating bills. When the high numbers are on the table, this becomes massive negotiating leverage.
How much does energy efficiency actually influence the sales price?
The price discount for properties with poor energy efficiency (classes G/H) is 27%. In Austria the discount compared to class A is up to 30%. This is market practice, not a bargaining chip.
Is an energy renovation actually worth it?
Yes, because the payback runs through two channels: lower operating costs PLUS higher selling price. If you only calculate energy savings, you are missing half of it. The combined payback period is significantly shorter than expected.
Which measures are worthwhile even if the sales date is unclear?
Insulating the top floor ceiling (cheap, quick, immediate effect), replacing the heating system from oil/old gas (high subsidies, better energy class), replacing single-glazed windows (noticeable cost reduction, better quality of living).
What has changed among buyers in recent years?
Since 2022, CO2 emissions have become a direct price factor. Every kg of CO2/m²/year reduces the price by 36 cents. The correlation coefficient increased from -0.08 (2022) to -0.36 (2024). Buyers today rule out inefficient properties from the outset.
Why do so few owners take advantage of the available funding?
The problem is not a lack of awareness, but the complexity of the decision. Owners do not know where to start, which measure delivers what, which subsidy is right. This uncertainty leads to passivity.
What happens if I wait to renovate?
If you wait, you lose twice: firstly, the legal requirements are constantly increasing. Secondly, the longer you wait, the lower the value of the property will be. The gap between efficient and inefficient real estate is widening.
How do investors factor energy efficiency into the purchase price?
As an investor, I calculate energy costs directly into my price expectations. An old building with 100-200 kWh/m²/year costs massively more than a new building with less than 50 kWh/m². I capitalise this difference backwards into the purchase price – as a hard factor, not a detail.
Summary: What you need to know now
Concerns about energy costs are justified. But they do not automatically lead to the right action.
Seven to eight out of ten owners underestimate how much energy efficiency influences the sales price.
The hidden cost is not in the running costs. It sits in the sales price. In the negotiating position. In the saleability of the property.
As an investor and sales representative, I see both sides. The maths is clear: energy efficiency is not a luxury. It is a hard value factor.
You do not have to fix everything right away. But you have to understand the mechanics.
Buyers today expect things differently from three years ago. CO2 has become a price factor. Energy certificates are exclusion criteria.
The decision as to whether and when to invest depends on your situation. But ignoring the decision costs you money.
The market punishes inaction. Continuously. Measurably.
Key Takeaways
- Price discount is massive:20-30% for energy-inefficient properties – this is market practice, not a matter of negotiation
- 70-80% underestimate the effect:Most homeowners do not calculate what energy efficiency means when selling
- Dual payback:Investments pay off through lower operating costs PLUS higher sales prices
- CO2 is a price factor:Buyers' perspectives have changed fundamentally since 2022 – every kg of CO2/m²/year reduces the price by 36 cents
- Energy certificate as an exclusion criterion:Buyers today exclude inefficient properties from the outset, not just after negotiations
- Waiting becomes more expensive:The gap between efficient and inefficient real estate is widening – if you wait, you lose twice as much
- Feasible first steps exist:Ceiling insulation, heating replacement, window replacement are worthwhile even if the sales date is unclear
- Renovation and increase in value of Zinshäuser (Viennese apartment buildings)
- Property valuation in Vienna