22.04.2023
The European Parliament recently passed a new bill aimed at combating climate change by reducing carbon emissions. This new legislation has major implications for the property markets in Cyprus and Greece, where there are a large number of buildings over 30 years old that require energy supply.
If and when they are enacted in local law, these new rules will require all new buildings to be zero-emissions from 2028, with a 2026 deadline for new buildings occupied, operated or owned by government agencies.
All new buildings should be equipped with energy-efficient technologies by 2028, when it is technically feasible and economically feasible, and residential buildings undergoing major repairs – until 2032.
It is important to note that by 2030 residential buildings will need to achieve at least an energy efficiency class E and by 2033 a class D on a scale from A to G, the latter corresponding to the worst-performing 15% of the buildings in the national ranking of Member States EU.
If a building does not meet these energy efficiency criteria , it cannot be mortgaged or transferred.
Cyprus and Greece have a large number of old buildings that do not meet the new energy efficiency standards set by the European Union. In Cyprus, for example, about 70% of the buildings were built before the 1980s, while in Greece the figure is about 55%.
According to a recent study, about 154,000 buildings in Greece were built before 1919, and 324,700 buildings were built between 1919 and 1945. About 573,250 buildings were built between 1946 and 1960, and 639,475 buildings between 1961 and 1970. These old buildings are in need of significant upgrades to meet new energy efficiency standards , and this is expected to have a huge impact on local real estate markets.
This could result in higher costs for homeowners and landlords, as well as for buyers and renters looking for more energy efficient properties.
