Energy efficiency determines the market

Although energy prices normalized, energy efficiency has definitively become a determining factor in house prices. Last year, Realo already reported that energy-efficient homes began to increase in price faster, and in 2023 this trend was confirmed.

Key Points

- Compared to houses with EPC D, the same house with at least label B costs 18.69% more in Flanders and 26.73% more in Wallonia
- Energy-efficient houses continue to increase in price, both in Flanders and Wallonia
- Energy-consuming houses only decreased in price in Flanders
- Almost half of the Walloon houses on the market had a poor EPC score

The value of a house in Flanders increases by 18.69% when it has at least a label B (less than 200 kWh/m2/year) compared to the same house with label D (300-400 kWh/m2/year). Conversely, the value of the same house decreases by 13.81% in value when it has a label F (more than 500 kWh/m2/year). In Wallonia, the difference is even more striking. An energy-efficient house has an added value of 26.73% compared to a house with label D.

Flemish less interested in energy-consuming houses

A significant reversal from 2022 is that energy-consuming houses have begun to decrease in value. Possibly, the renovation obligation for houses with E and F labels in Flanders weighs more heavily on the decision of buyers than initially thought. This theory seems plausible, as in Wallonia, where no renovation obligation exists, houses with a poor energy score have not decreased in price. Also, the incentive measures for demolition and reconstruction do not seem to convince the large mass to invest in a cheaper energy-consuming house instead of new building land.

Energy-efficient houses always more expensive

In both Flanders and Wallonia, the most energy-efficient houses continued to increase in value, despite the stagnating prices of house prices in general. A similar trend is also seen when comparing with new-build houses, which are required to have a very good energy score. While houses nationally have hardly increased in the last two years, new-build houses became even more expensive. The prices of new-build houses did stagnate in the last months, but this can be attributed to a price correction after strong price increases. All details can be found in the annual overview of the New Build Barometer.

Energy-efficient houses still in the minority

The share of energy-efficient houses (less than 200 kWh/m2/year) rose in 2023 in Flanders to 20% of all houses put up for sale (excluding new construction). In 2019, this share was still less than 15%. However, 38% had an energy score so poor that they are obliged to be renovated to at least label D within five years. Yet, there is also a slight improvement, as their share in 2019 was still 45%.

In Wallonia, the situation is less positive. Only 10% of the houses on the market have a good energy score. Nearly half (42%) of the houses on the Walloon market in 2023 scored poorly to very poorly in terms of energy performance. However, there is an improvement over the years, in 2019 the share was still 53%.

Read the full annual report here

  • Real estate market continues to falter
  • The added value of location highlighted
  • Discover the house prices per municipality here
  • How was the annual report compiled?