Published 29.11.2022
One of the main findings of our Future Living Study in 2021 across all EMEA & Americas markets is that sustainability has become the preferred housing concept of the future, with energy efficiency being of particular importance (Greuter & Bangert, 2021). While the demand for housing is decreasing due to the current market situation (inflation, drastic changes in interest rates developments, energy crisis), the interest in purchasing properties that use renewable energy sources has increased considerably in Germany (+21% compared to the previous year). As Berlin is one of the most forward-looking metropolises in Europe, there is a growing interest in finding out to what extent sustainability and energy efficiency have an impact on local customers' willingness to pay.
Since the development of sustainable residential properties is usually associated with higher costs, developers have asked themselves to what extent customers are willing to pay for these additional costs. In order to answer these questions, we conducted a survey between May and August 2022, in which 189 people participated. The survey was distributed through the Engel & Völkers network and social media.
Overall, the results show how important sustainability has become in the decision to buy a house.
· 85% of the participants are willing to pay premiums for the sustainability aspects surveyed. In particular, additional costs for properties with renewable energy sources are assumed by more than 70 % of the respondents.
· No preference can be identified for climate-neutral new construction or energy-saving existing buildings.
· Sustainable materials and sustainable energy sources have a statistically significant and positive influence on the amount of additional willingness to pay indicated by customers. The median of additional willingness to pay is around 10% of the purchase price.
· Although, at around 54% significantly fewer people are willing to accept additional costs for sustainable building materials than for sustainable energy sources, the amount of additional willingness to pay is significantly higher for the variable materials.
· Almost 71 % of the participants said they would accept additional costs for sustainable energy sources when buying a housing unit. The isolated effect of this variable is 4.5 percentage points lower than that of sustainable building materials.
· People with children in particular are willing to spend more on a sustainable residential property. Compared to people without children, the willingness to pay is 2.8 percentage points higher.
· Overall, an additional willingness to pay of 9.2 percentage points for a newly-built property made of sustainable building materials and with renewable energy sources can be assumed.
For each completed questionnaire, we planted a tree and ended up with the proud total of 189 trees. This activity is in appreciation of those who have participated and as a sign of the team's own commitment to sustainability.
If you would like to read the complete report in English, please click the following link: Sustainability Report EN
If you would like to read the complete report in German, please click the following link: Sustainability Report DE
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