Irish Homebuyers Pay €110,000 Premium for Energy-Efficient Homes in Q1

Homebuyers in the Republic of Ireland are paying a premium of €110,000 for more energy-efficient homes, according to a new report by Geowox. The median sales price for homes with a top BER (Building Energy Rating) of A to B was €465,000 in Q1 this year. This is 31 percent or €110,000 higher than homes with a lower BER (C to G), which sold for €355,000.

The report excluded new homes from this energy-based comparison to isolate the energy efficiency premium. New homes transacted at a median value of €449,000, a €94,000 premium over existing homes at €355,000. Changes to the State’s BER system are expected next month, replacing the 15-point scale with a simpler system.

Overall, the volume of home sales in Q1 fell by 2.5 percent to 11,163 year-on-year, though new home sales increased by 17.7 percent to 2,428. Home sales prices rose by 6.9 percent year-over-year, with the median price for an Irish home reaching €385,000, a €25,000 increase from the previous year. Dublin city was the most expensive urban center at a median of €580,000, while Monaghan was the most affordable at €164,000.

Geowox head of data Marco Giardina noted that median prices are rising, and energy-efficient and new homes continue to command significant premiums. The government aims to build a minimum of 300,000 new homes by 2030, having recently loosened rent controls, changed apartment design standards, and cut VAT on new-build apartments to attract investors.