Homebuyers in the Republic are paying a premium of €110,000 for more energy-efficient homes.
That’s according to a new report by Dublin-based data and home valuation company Geowox.
It found that the median sales price achieved for homes with a top Ber (building energy rating) of between A and B was €465,000 in the first quarter of this year.
This was 31 per cent or €110,000 above the median sales price achieved for homes with a lower BER rating of C to G, which was €355,000.
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“This energy-based comparison excludes new homes to gain a more precise understanding of the energy efficiency premium,” the report said.
New homes transacted at a median value of €449,000, a €94,000 premium over the median for existing homes at €355,000.
The findings come in advance of changes to the State’s Ber system. From next month, the 15-point scale, which runs from A to G with various subcategories, will be replaced by a simpler system.
The Geowox report, which draws on data from the residential property price register, indicated that the volume of home sales in the first quarter fell by 2.5 per cent to 11,163 (compared with the three-month period the previous year).
The total included 2,428 new homes, up 17.7 per cent year on year. Home sales prices, meanwhile, rose by 6.9 per cent year over year in the quarter.
The median price for an Irish home sold in the first three months of the year was €385,000, a €25,000 increase compared with the same period the previous year.
Out of the top 25 urban centres, Dublin city was the most expensive at a median price of €580,000, while Monaghan was the most affordable at €164,000.
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In Dublin city, prices in Eircode D14, which includes the suburbs of Churchtown, Clonskeagh and most of Dundrum, were highest at €784,000, while the lowest prices were in Dublin 10 at €325,000.
“Median prices are steadily rising, while energy-efficient and new homes continue to command hefty premiums,” said Geowox head of data Marco Giardina.
The Government’s revamped housing plan promises that a minimum of 300,000 new homes will be built by 2030.
PRS [private rental sector] investment, which is responsible for most of the apartment building, came to a virtual standstill in 2022 amid a hike in borrowing and construction costs. This led to marked slowdown in new-home completions. The industry also cited tough rent regulations as a factor.
To entice investors back, the Government has loosened rent controls, changed apartment design standards and, in the recent budget, cut the VAT rate on new-build apartments.
