The 'green' house? It sells in 20 days less

"Energy class is gradually establishing itself as a driver of choice in the market. Looking at user searches, searches that include only energy-efficient properties have increased by more than 72% between 2023 and 2022. Recent European regulations have certainly pushed users towards a faster and more conscious purchase,' explains Mattia Colantuoni, Co-Founder of Wikicasa.

But that is not all. Different timescales are inevitably reflected in the very availability of properties on the market. The study analysed how many properties of each energy class are available for sale. While there are more houses in energy classes B to G for sale in 2024 than in 2023 - with those in class G rising from just over 60,000 in 2023 to over 120,000 in 2024 - this is not the case for class A properties. In fact, in 2023 there were 25,444 class A houses, today there are just over 23,000 in 2024. "Analysing the available data _ adds Marco Tilesi, CEO of Century21 Italy _ we can imagine that soon this scarcity of class A properties will also be reflected in prices, generating an increase."

"While the demands of demand are now clear to the market, the behaviour of supply has not yet adjusted accordingly _ concludes Wikicasa's Colantuoni_. The national stock of energy-efficient properties is largely made up of new buildings. For this reason, the scenario that is foreshadowed as a result of the new EU regulations by 2050 will, by necessity, have to include incentives and measures to restructure the existing stock, so as to increase the number of high-efficiency properties available on the market and ensure the right match between supply and demand'.

Some research at the international level reveals a certain gap between Italy and the rest of Europe with regard to the energy efficiency of buildings. According to data from the European Commission's Energy Performance of Buildings Directive (Epbd), around 25% of new residential buildings in Europe are now Class A. This represents a significant increase over the figures of five years ago, when the percentage was around 15%. The growth has been driven by targeted European policies, also at national level.

Countries such as Germany, the Netherlands and Scandinavia are leading this transition, with a percentage of Class A buildings exceeding 30 per cent in new construction. These countries have implemented strict energy regulations and offer tax incentives and financing to promote the adoption of sustainable technologies.

The market for Class A buildings has seen an increase in demand, especially in urban areas, where environmental awareness is higher and the long-term benefits of sustainable buildings are more appreciated. Prices for Class A properties tend to be 15-25% higher than for lower class buildings, reflecting higher construction costs but also energy savings and environmental benefits.

Despite the positive numbers, the Class A property sector in Italy faces several problems. One of the main ones is construction costs. The construction of energy-efficient buildings requires a higher initial investment due to the use of advanced materials and the implementation of technologies such as photovoltaic systems, advanced thermal insulation systems and controlled mechanical ventilation systems.

These additional costs may discourage small builders and slow down the widespread diffusion of Class A properties, limiting their presence mainly in metropolitan areas and less so in rural or peripheral areas. In addition, the payback time of initial investments can be long, making the investment less attractive for those seeking more immediate returns.

Another significant challenge is bureaucracy. Authorisation processes for the construction of Class A buildings can be complex and lengthy, due to stringent regulations governing energy efficiency and sustainability. This can slow down projects and increase overall costs, making Class A buildings less competitive than conventional ones.

Finally, there is the issue of awareness and education. Many buyers and builders are still not fully aware of the benefits of Class A real estate. More information about the long-term benefits, both in economic and environmental terms, is needed to stimulate wider and more informed demand.

Reflecting on the matter, several questions remain. If Italy's property stock is so old, it is because we have old houses, even very beautiful ones. What should owners do with all these properties? And is it fair that someone who finds himself receiving a large and certainly not class A house, full of memories, from his family should be told by the estate agent on duty that 'nowadays people are only looking for small, new houses' and therefore that beautiful big house is worth as much as an anonymous flat? There must be a bridge, which is currently missing.

The feeling is that important pieces are missing between saying and doing, capable of transitioning the market from the 'old' to the 'new'. There is a lack of a mature role for real estate brokers, so much so that I personally suspect that many market declines are more due to the negligence of many (certainly not all) of these professionals, for whom it is certainly easier and more profitable to sell a depreciated property, which finds (intelligent) buyers in a few weeks. But, I reflect, does the market really benefit?