Impact of the 2022 Energy Crisis on the Importance of Energy Performance Certificates for the Real Estate Market

Fekete, Dalma Eszter and Baranyai, Eszter (2024) Impact of the 2022 Energy Crisis on the Importance of Energy Performance Certificates for the Real Estate Market. FINANCIAL AND ECONOMIC REVIEW, 23 (1). pp. 106-134. ISSN 2415-9271

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Abstract

This study relies on a unique database covering different segments of the residential real estate market to investigate whether the value of energy performance certificates was affected by the energy crisis in 2022. Based on the relevant literature, the study uses the linear regression estimation method, in which the effect of interaction is examined using the difference-in-difference method. The study shows that energy performance certificates have a significant impact on the estimated market value of properties, both by individual category and in groups. While in 2022 Q2, before the residential energy price increase, an energy-inefficient property cost 12 per cent less on average compared to a property with an average energy rating, controlling for other factors, that difference increased to 20 per cent after the outbreak of the energy crisis. It may therefore be worthwhile for Hungary to consider taking measures to improve the energy efficiency of buildings as soon as possible.

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