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A recent survey published by “Dinamic”* suggests that the energy performance of a French house may have a significant impact on its market value.

French regulation requires assessing the energy performance (“Diagnostic de Performance Energetique or DPE”) before selling your home The DPE bands rank from A to G respectively for the highest and poorest energy performance. (read our post buying French property: energy performance becoming more important? ).

If the DPE shows one of the highest energy performance grade** (A or B), your house market value may be up to 30% higher than the average market price for an equivalent property. According to “Dinamic”, this is particularly the case for houses located in the West part of France. Inversely, it is nearly impossible to sell a house at “market price” when the DPE shows the lowest DPE (grade G), depreciation reaches 28% in the Southwest and 22% in Provence… Overall houses in band D are the most represented, whatever the regions (31 to 45% of dwellings surveyed).

The study also highlights an inconsistency on DPE as it classifies the energy efficiency of a property according to primary energy expenditure, and not based on the price of energy bills paid by the occupant, tenant or owner. Therefore, “the DPE mechanically downgrades by one band electric-heated properties over a gas-heated accommodation”, according to a press release issued by Dinamic.

carte_dinamic-80e09

Impact of the DPE band as a percentage of the price for an equivalent property classified D, for each climate zone (2010-2011 bases of sales) (Dinamic Study, September 2013)

The French notaires database has been recording DPE data only since 2011, therefore this preliminary results will have to be confirmed in future studies. Additionally, the notaire will register more in depth data from 2014 onward, as primary energy type, renewable energy equipment, type of glazing, construction materials used for the house and the presence of a regulated high energy efficient label (e.g. “BBC” or ” bâtiment basse consommation” ***).

*Dinamic is an association created by the French notaires, the survey was only carried out on houses and not on flats

**The Band are related to the annual primary energy consumption in kWh / m2 / year:
0-50 band A: The most recent new houses conforms to the regulatory label BBC or  “low- consumption buildings “under regulation “RT 2012” in place for new house started since 1/1/2013. For renovation it is hardly attainable.
51-90 band B: Achievable for new construction provided for a system of efficient heating and hot water (heat pump, condensing boiler, solar system … ) , achievable under renovation. For certain new buildings comply with the statutory label BBC or “Low Consumption Buildings ”
91-150 band C: Standard in new construction heated by gas in France before the implementation of the RT 2012 (under the previous regulation “RT 2005” which imposes e.g. for Paris kWh/m2/year maximum 130 ).
151-230 band D: Standard in new construction of electrically heated homes in France (under the previous regulation RT 2005 imposes eg Paris less than 250 kWh/m2/year) Standard 1980 and 90 for properties using heaters fuels. Substantial improvements are easily attainable including replacement boiler and loft insulation and windows, or by switching to a heat pump for electric systems.
231-330 band E: class housing before the first oil shock or existing homes heated by electricity .
331-450 band F: existing homes generally built between 1948 and 1975. The savings are very important when upgrading to more energy efficient, economic performance (return on investment ) is obvious.
above 451 band G

***A BBC or low-energy building by French thermal regulation RT2012 is a building, for which the conventional primary energy consumption for heating, cooling, ventilation, domestic hot water, lighting and technical auxiliaries (pumps … ) is less than 80% of the normal full consumption