Spatial Implications of EPC Rankings Over Residential Prices

Duarte, Carlos Ramiro Marmolejo; Ai, Chen; Bravi, Marina

doi:10.1007/978-3-030-23786-8_4

Cited by 10 publications

(7 citation statements)

References 20 publications

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“…A review of the literature on the application of HPM for the EPC valuation in European countries have been performed [38]. The cases analyzed refer to residential and commercial property markets [15,39,40].…”

Section: Investigating the Epc Impacts Through Hpmsmentioning

confidence: 99%

EPC Green Premium in Two Different European Climate Zones: A Comparative Study between Barcelona and Turin

et al. 2019

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Energy performance certificates (EPCs) are important tools aimed at improving buildings’ energy performance. They play a central role in the context of the Energy Performance of Buildings Directive (EPBD) which asks member states (MS) to take the necessary measures to establish a complete certification system. In this study, an application of the hedonic price method (HPM) assessing the effect of energy labels derived from the EPC on real estate market value is presented. The estimation methodology was applied to two European cities characterized by different climate conditions. The analysis was based on two datasets of listing prices referring to multi-family residential markets in Turin (Italy) and Barcelona (Spain). Four models for each dataset were applied to capture the marginal price of green attributes, but also to control for the spatial autocorrelation among values. The findings showed how the EPC has been applied in the two countries and how it has influenced the real estate market. Turin’s buyers pay more attention to the EPC label, while in Barcelona, they value much more single characteristics, such as air conditioning and a swimming pool, considered popular attributes among contemporary buildings in this climate zone. From the results, it is possible to deduce that the implementation of the EPC schemes is still irregular in EU countries and must be strengthened through a standardized rating model.

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Section: Investigating the Epc Impacts Through Hpmsmentioning

confidence: 99%

EPC Green Premium in Two Different European Climate Zones: A Comparative Study between Barcelona and Turin

et al. 2019

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“…By comparing the results of the current analysis with two previous researches based on the same study area (Turin) with the same source of data (TREMO) [12,13] and with other recent literature [54,75,76], it is possible to confirm that the attention on the EPC label rose slightly in recent years and is starting to be monetized by the real estate market, not only for the lower labels (E, F, G) but also for the higher ones (A-A4, B).…”

Section: Hedonic Regression Modelsmentioning

confidence: 94%

“…In a recent study, Chen and Marmolejo-Duarte [9,54] reflect on the differences between dwellings whose energy efficiency impacts price formation and dwellings whose energy efficiency does not influence pricing processes, in Barcelona's (Spain) residential market. Starting from studies about the energy efficiency marginal prices methodologically founded on the use of hedonic models, the authors assumed the premises that, in some cases, the increase of the relevance of EPC labels, in terms of marginal prices, is not constant for all the classes (in Spain, A-G).They propose to analyse the differences in terms of architectural and location characteristics between dwellings that show an increase in EPC rating marginal prices, and, at the same time, dwellings for which EPC seems not to be relevant for pricing processes.…”

Section: The Energy Performance Certificate Effects On Housing Pricesmentioning

confidence: 99%

EPC Labels and Building Features: Spatial Implications over Housing Prices

2021

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The influence of building or dwelling energy performance on the real estate market dynamics and pricing processes is deeply explored, due to the fact that energy efficiency improvement is one of the fundamental reasons for retrofitting the existing housing stock. Nevertheless, the joint effect produced by the building energy performance and the architectural, typological, and physical-technical attributes seems poorly studied. Thus, the aim of this work is to investigate the influence of both energy performance and diverse features on property prices, by performing spatial analyses on a sample of housing properties listed on Turin’s real estate market and on different sub-samples. In particular, Exploratory Spatial Data Analyses (ESDA) statistics, standard hedonic price models (Ordinary Least Squares—OLS) and Spatial Error Models (SEM) are firstly applied on the whole data sample, and then on three different sub-samples: two territorial clusters and a sub-sample representative of the most energy inefficient buildings constructed between 1946 and 1990. Results demonstrate that Energy Performance Certificate (EPC) labels are gaining power in influencing price variations, contrary to the empirical evidence that emerged in some previous studies. Furthermore, the presence of the spatial effects reveals that the impact of energy attributes changes in different sub-markets and thus has to be spatially analysed.

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“…Referring both to some recent literature on energy performance and housing prices in Europe and Italy [23][24][25] and to the authors' previous research (aimed at estimating energy rating incidence on property market value in very similar real estate markets to the one of this survey), it was possible to approximate each energy rating upgrade increase of about 2% the estate value (R 2 = 0.734542312; adjusted R 2 = 0.687970788, both significant in real estate applications).…”

Section: Summary Of the Researchmentioning

confidence: 95%

How Energy Retrofit Maintenance Affects Residential Buildings Market Value?

et al. 2020

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By now, it is clear the built environment could play an important role in fighting climate change, since it accounts for around 39% of global energy-related carbon emissions. Generally speaking, Italian residential stock is over 50 years old and around 16% of that needs large interventions due to its poor maintenance condition. So, the maintenance in this context can play a pivotal role in acheiving both energy efficiency and asset valorization. Introduced by a reference framework for the question in the title, this paper presents the case study: a portion of a working-class neighborhoods near the metropolitan city of Turin, marked by very recurrent typologies for the period (early seventies). The local real estate market is discussed to investigate the extraordinary maintenance impact on the property values: the paper considers the market value increase due to the energy class upgrade and the external look improvement. Individual owners putting money on this group of works get a very cost-effective investment and take advantage of Italian legislation supporting these kinds of interventions: the whole is greater than the sum of its parts and in turn greater than the cost assumed for the renovation work.

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Spatial Implications of EPC Rankings Over Residential Prices

Cited by 10 publications

References 20 publications

EPC Green Premium in Two Different European Climate Zones: A Comparative Study between Barcelona and Turin

EPC Green Premium in Two Different European Climate Zones: A Comparative Study between Barcelona and Turin

EPC Labels and Building Features: Spatial Implications over Housing Prices

How Energy Retrofit Maintenance Affects Residential Buildings Market Value?

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