How Relevant is Energy Efficiency in The Marketing of Homes? Evidence from Real Estate Agents in Spain

Abstract

In order to foster informed transactions, the Energy Performance of Buildings Directive has made it mandatory to get an Energy Performance Certificate in the marketing of the Communitarian Real Estate. Due to energy savings and environmental preservation, it is expected that efficient buildings do receive an increased willingness to pay. The evidence coming from a number of statistical studies has confirmed the existence of such premium. Nevertheless, such finding is contradictory in relation to the conclusions of opinion-based studies. This paper seeks to study whether energy efficiency drives market price and the marketing of homes in Spain. In doing so, a survey applied to realtors across the country has been implemented. The results are in line with other opinion-based studies pointing out that energy performance has a negligible impact on the marketing of homes. Furthermore, real estate agents suggest that companion policies in the sphere of subsidies and fiscal exceptions are needed in order to bring energy efficiency to the first line of elicitation attributes in the residential market.