Filenews 3 June 2024 [incyprusproperty]
Changes are coming to real estate, they will become more expensive – Milestone years
Changes in the real estate sector are brought about by climate change, with the result that the real estate sector is faced with serious challenges and increased costs, whether for the builders or the buyers. Climate change is reshaping the world in extreme ways, and one sector feeling the pressure, quite literally, is real estate, with new rules dictated by the EU pushing costs even higher and changes expected soon. "F" through the office Danish International Real Estate Consultants and Appraisers gathered the milestone dates for the green transition based on European legislation, what will be allowed and what will be prohibited, but also how much the cost of buying real estate will increase
According to data from the Danos office, “construction costs will increase by 10-20% in the coming years, solely due to EU requirements for greener buildings. An important issue for the industry is also the increasing risks caused by climate change, affecting construction costs and, by extension, potential buyers. Rising costs create difficulties in securing financing, adding an extra layer of complexity to an already dynamic market.” If the new regulations, the office notes, are enacted into local law, they will require zero emissions for all new buildings from 2028, with specific deadlines for public authorities. The sale or rental prices of the properties, which are environmentally friendly, are increased by up to 20% compared to the rest. This means that where a fund of 350,000 was needed to buy a house or apartment, an additional 50,000 will be needed for state-of-the-art energy installations such as photovoltaics, heating systems and insulation materials. From 2025 onwards, the Danos office reports, it will also be prohibited to subsidize heating systems as we do now for example with oil in mountainous areas. Also, the EU member states should take measures so that by 2040 there are no central heatings that work with oil or gas. This means underfloor heating systems and other green heating solutions. At the same time, the energy reduction in buildings should be of the order of 16% by 2030 and 20% to 22% by 2035, explains the Danos office, which means that new homes and offices should they are largely energy independent. by 2028 all buildings used or owned by public authorities must become zero-emission buildings. This will increase the demand for energy-independent offices. By 2030, all public and non-residential buildings should, where possible, install photovoltaics. At the same time, the goal of converting all buildings within the EU into zero-emission buildings by 2050 is being discussed. Agricultural buildings, temples, temporary, historic and listed buildings are excluded. Another factor, noted by the Danos office, which is expected to push costs up is the demands of insurance companies, which are increasing alongside the risks posed by climate change. "Maybe at the moment the risk of flooding from rising sea levels and increased temperatures seems like a scenario from a distant or dystopian future, but the potential blow to the coastal cities of Cyprus cannot be ignored," says Kyriakos Koiliaris Chief Marketing Officer of the Danish office.Coastal properties worldwide, he notes, face increased risks as sea levels rise due to melting glaciers, leading to potential declines in property values and increased insurance costs. The recent catastrophic floods in Greece, he adds, are a reminder of the destructive power of extreme weather events, causing extensive damage to agricultural land, infrastructure and livelihoods.
