Energy class impact on property value
Visualize how energy performance influences property prices in Luxembourg.
Impact by energy class
| Class | Adjustment | Adjusted value | Delta vs current | CO₂ (kg/m²/yr) |
|---|---|---|---|---|
| A | +8% | 810.000 € | +60.000 € | 8 |
| B | +5% | 787.500 € | +37.500 € | 14 |
| C | +2% | 765.000 € | +15.000 € | 21 |
| Dcurrent | 0% | 750.000 € | — | 29 |
| E | -3% | 727.500 € | -22.500 € | 41 |
| F | -7% | 697.500 € | -52.500 € | 57 |
| G | -12% | 660.000 € | -90.000 € | 79 |
| H | -18% | 615.000 € | -135.000 € | 101 |
| I | -25% | 562.500 € | -187.500 € | 124 |
Green premium / Brown discount
What is the green premium / brown discount?
Green premium
Energy-efficient properties (classes A to C) sell above the market average. This premium reflects lower heating costs, superior thermal comfort and early compliance with future EPBD standards. In Luxembourg, Observatoire de l'Habitat studies show a premium of up to +8% for A-rated properties relative to the D reference class.
Brown discount
Conversely, energy-inefficient properties (classes E to I) suffer a discount. Buyers anticipate future renovation costs, rising energy prices and increasing regulatory constraints (progressive rental bans on energy-wasting buildings, EPBD directive 2024). The discount can reach -25% for I-rated properties.
Methodology
Adjustment percentages are calibrated from observed transaction price gaps in Luxembourg, segmented by energy passport class. Class D serves as the reference (0% adjustment). Values are consistent with European academic studies and ECB climate risk analyses.
Sources & references
- Observatoire de l'Habitat du Luxembourg — Sales price analysis by energy class (2023-2025)
- ECB — Climate risk and real estate: emerging evidence on pricing (2024)
- EPBD recast Directive 2024/1275 — Zero-emission building stock by 2050
- TEGOVA EVS 2025 — ESG & Sustainability in Property Valuation (EVS 5)