Table of Contents
- 1 How have the prices for old properties in Bremen developed?
- 2 Are there price reductions for houses in Bremen and the surrounding area that require renovation?
- 3 When does the two-year obligation to renovate apply?
- 4 What does the obligation to renovate refer to?
- 5 **How are the differing perspectives on the GEG’s impact on property values, particularly regarding location-efficiency trade-offs, shaping buyer behaviour and market trends in Bremen?**
A certain class of building could lose significant value in the future: single-family and semi-detached houses with a poor energy efficiency class. In the case of these houses, the buyer is obliged to renovate the property within two years within the framework of the Building Energy Act (GEG). At least Oliver Adler from the Schwäbisch Hall building society assumes that these properties are losing value: For properties that have not been renovated in terms of energy efficiency and have an energy efficiency class of D or worse, the expert expects price reductions of 20 to 30 percent in the medium term, writes “Spiegel”. However, the Bremen broker Stephan Röpke doesn’t believe in such percentage forecasts.
How have the prices for old properties in Bremen developed?
According to market reports from the real estate company Engel & Völkers, the average price per square meter for real estate rose continuously in Bremen from 2020 to 2022 – from 2,048 euros to 2,704 euros. Last year the price went down to 2557 euros. So far in 2024, Engel & Völkers has determined an increase again, the average price is 2,575 euros.
Are there price reductions for houses in Bremen and the surrounding area that require renovation?
“Discounts are already common in the market for buildings that are not efficient,” says Björn Siemer, Managing Director of Sparkasse Immobilien Bremen GmbH. “Since the energy price shock caused by the war in Ukraine, buyers have paid much more attention to the energy efficiency of existing properties. In our opinion, the renovation obligations under the Building Energy Act are largely taken into account in the current price reductions.”
Stephan Röpke, deputy chairman of the IVD (German Real Estate Association) North for Bremen, cannot agree with Schwäbisch Hall’s percentage forecast: That makes little sense. Because the same house in a desirable location costs more than in a not so desirable area – “but the costs for replacing a heating system, for example, are the same,” says the managing partner of the brokerage firm Röpke & Behring. “And when it comes to prices in general, my experience is that the existing properties in need of renovation – which make up the majority of the market – do not lose value, but there is a premium for the top properties that do not need renovation.” In addition, of course, there is always the demand-supply ratio: “If you have finally found your absolute favorite property, you naturally want to get it.” Any renovation costs would then hardly play a role in the purchase decision.
When does the two-year obligation to renovate apply?
According to the Immobilienscout portal, from this year it applies to single and two-family houses that do not meet the requirements of the GEG and where a change of ownership occurs through purchase, donation or inheritance. However, there are exceptions: Anyone who lived in the property before February 1, 2002 does not have to carry out any renovations. For buildings under monument protection, the following applies: The measures are not necessary if the renovation is not compatible with the objectives of monument protection.
What does the obligation to renovate refer to?
In the affected houses, the top floor ceiling must be insulated if the upper floor is unheated in order to keep the heat in the living area below, said energy expert Inga Ervig in an article for Immobilienscout. The minimum requirement for thermal insulation of the floor ceiling is precisely regulated.
There are also specific specifications for insulating heating and hot water pipes – the insulation thickness and effect depend on the pipe diameter, according to the author. The new owner must replace an oil or gas heater if it is older than 30 years. Low-temperature and condensing boilers are likely to continue to operate. In addition, an existing heating system may continue to be operated if it has a nominal output of less than four kilowatts. This also applies to oil and gas heating systems if they are only used to generate hot water or as individual room heating.
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**How are the differing perspectives on the GEG’s impact on property values, particularly regarding location-efficiency trade-offs, shaping buyer behaviour and market trends in Bremen?**
## World Today News Interview: Navigating the Future of Energy-Inefficient Housing
**Introduction**
Welcome to World Today News. Today, we’re exploring the complex topic of energy efficiency in housing and its impact on property values, spurred by recent legislation impacting older homes. Joining us are two experts with diverse perspectives:
* **Björn Siemer,** Managing Director of Sparkasse Immobilien Bremen GmbH, who has witnessed firsthand the shifting market trends in real estate.
* **Stephan Röpke,** Deputy Chairman of the IVD (German Real Estate Association) North for Bremen, bringing his extensive knowledge of the broader real estate landscape.
Let’s begin.
**Section 1: The Building Energy Act and its Implications**
* **Host:** The Building Energy Act (GEG) has introduced a two-year renovation obligation for certain properties. Mr. Siemer, you mentioned seeing price reductions for inefficient homes already. How significant are these reductions, and how are they playing out in the Bremen market?
* **Host:** Mr. Röpke, you expressed skepticism about the percentage forecasts for declining property values. Can you elaborate on why you believe these predictions may be inaccurate? What are your observations on how the market is reacting to the GEG?
**Section 2: Location vs. Efficiency: A Complex Equation**
* **Host:** The article highlights the potential conflict between a desirable location and the efficiency of a home. Mr. Siemer, how do buyers weigh these factors when making purchase decisions? Are buyers willing to compromise on location for a more energy-efficient property, or vice versa?
* **Host:** Mr. Röpke, you suggest that renovation costs may not be the deciding factor for buyers who find their dream home. Can you elaborate on this point? Are there other factors that hold more weight in these emotionally charged purchase decisions?
**Section 3: Beyond Price: The Broader Impact**
* **Host:** The GEG aims to improve energy efficiency and reduce emissions. Mr. Siemer, beyond the issue of property values, what other positive impacts do you foresee from these regulations on the housing market and the environment?
* **Host:** Mr. Röpke, do you believe there are any potential downsides or unintended consequences to the GEG? How can we ensure a smooth transition, especially for those who may face financial challenges in carrying out the required renovations?
**Section 4: Looking Ahead: The Future of the Housing Market**
* **Host:** Both of you bring valuable perspectives on the evolving landscape of the housing market. Looking ahead five years, what major shifts do you anticipate in terms of property values, buyer preferences, and the overall demand for energy-efficient housing?
**Conclusion**
Thank you to both Mr. Siemer and Mr. Röpke for joining us today and sharing your insights on this timely and important topic. The impact of the GEG is still unfolding, and the conversation about energy efficiency in housing is only just beginning. We hope this discussion has shed light on the complexities and challenges we face as we move towards a more sustainable future.
