€20 billion – the cost of energy modernization of one million buildings in Greece

In the coming years, the Greek real estate market is expected to undergo major changes related to the policy of energy modernization of buildings, which is carried out at the level EU and will affect all participating countries.

The EU Directive on the Energy Performance of Buildings is currently in the process of being revised, under which a retrofit plan will be implemented 40 million buildings across the EU by early 2033. This is 15% of the total and the amount of subsidies to be provided will amount to 150 billion euros.

In the case of Greece, it is estimated that in order to modernize at least a million homes by early 2033 funds will be required 15-20 billion euros. These are the buildings currently in the two lowest energy certificate categories. Estimated POMIDAto modernize the existing building stock in order to obtain energy category C certificate a capital of 30 billion euros will be required. This amount increases up to more than 70 billion euros to meet the EU target of upgrading all buildings by 2050 to be considered zero-emission buildings. In the whole EU, to cover the costs (in today’s prices), it is estimated that at least 1.5 trillion euros will be required.

What the new EU directive provides is 150 billion euros in subsidies to EU member states. Recall that, according to the new directive, 30% of the buildings belonging to the two lowest energy classes (more than a million buildings for Greece, where there are 3,650,000) must be transferred to category E by 12/31/2032. This is an upgrade that is estimated to bring about a 50% reduction in energy consumption. The directive is expected to be adopted by all Member States within the next two years.

As Ms. Maria Spiraki, Member of the European Parliament, said yesterday at a conference organized by POMIDA in cooperation with the European Union of Property Owners (UIPI), “the new community directive on energy efficiency in buildings seeks to introduce a set of minimum and uniform standards for energy retrofitting in order to achieve harmonization of everything process within the EU. This is expected to facilitate the implementation of large-scale events and reduce costs.” At the same time, given that the amount of 150 billion euros is considered insufficient by many stakeholders, Ms. Spiraki noted that the available resources will be pooled with other programs such as the NSRF and the state budget, and leverage in the form of bank loans will also be used. (also subsidized in terms of their cost).

However, in addition to improving the energy efficiency of buildings, other changes in the real estate market will begin in the coming years. For example, by the end of 2024, the so-called building modernization passports. They will be a kind of proof of the energy savings and emission reductions achieved in the refurbished building. Also by 2025, the process of harmonization of energy certificates throughout the EU will be completed, through the adoption of common standards.