What is renovating to a better energy label really worth?

Insulation, new windows, a heat pump: everyone knows it brings down your energy bill. But do you get that investment back when you sell? Based on the asking prices on ikzoek.immo, we can answer that question with figures per province for the first time. The answer is nuanced: sometimes amply so, sometimes not, and it mainly depends on where you start from.

How we measure the value jump

For each province and each property type, we calculate the median asking price per square metre per EPC label. This gives us an EPC gradient: how many percent more a property with label B costs per m² compared to the provincial average, and how much less a property with label F costs. Because asking prices also reflect other differences (a label A property is often newer and better finished too), we dampen that gradient by 30%. This keeps the estimate on the cautious side.

The renovation value calculator applies that gradient to your surface area and province. We do the same on every property page with label C or worse, starting from the asking price of that property.

A calculation example

Take a terraced house of 150 m² in East Flanders with label F, asking price 285,000 euros.

Two lessons stand out. First, the step from F to D, the legal minimum under the renovation obligation, usually does not pay for itself through the sale value alone. Second, the step to B comes close to breaking even on value, and that is before we even factor in the lower energy bill.

The energy savings count too

That bill is the second return. For the same property, we estimate the annual energy cost at around 4,500 euros for label F and 2,200 euros for label B. That is 2,300 euros per year, or 23,000 euros over ten years, even without price increases. Add the value jump and the savings together, and a thorough renovation to label B is a worthwhile investment in most provinces, especially if you will live in the property for ten years or longer.

Where the return is highest

The gradient differs by region. In provinces with a tight market and high prices per m² (Flemish Brabant, Antwerp, the coast), the absolute value jump is largest, because every percentage point is calculated on a higher base. In cheaper regions (parts of Hainaut, Luxembourg), the percentage gap between labels is sometimes even bigger, but the amount is smaller, and the renovation cost can come close to the value of the property. There, renovating is mainly a choice for your own comfort, not for added value.

Apartments are a different story. Their energy performance depends heavily on the whole building (roof, facade, shared boiler room), and the individual owner has less control. The gradient between labels tends to be flatter there.

Which works give the biggest value jump per euro?

1. Insulate the roof and attic floor. Cheap, a big effect on the metric, and buyers ask about it.
2. Replace the glazing. Visible, noticeable and an immediate label step.
3. Replace the heating. A heat pump does a lot for the label, but only if the building envelope is already reasonable. Otherwise, insulate first.
4. Facade insulation. Expensive, but often needed to get below label C in older properties.

Avoid half measures that barely improve the label: a new kitchen sells well, but changes nothing about the EPC.

Timing: renovate before or after the sale?

If you are selling soon, a full renovation is rarely wise: you bear the costs, the disruption and the risk, while the buyer pays at most the cautious value jump. In that case, limit yourself to the cheap steps (roof insulation, sealing small leaks) and a recent EPC certificate, so the label matches reality. If you will stay for at least five to ten more years, the thorough approach pays off, especially with the current subsidies and the interest free Mijn VerbouwLening (My Renovation Loan).

Want to know what your property is worth today, before and after renovation? Start with our free valuation and then continue calculating with the renovation value calculator.