Impact of Energy Efficiency on Housing Prices in Türkiye
Format: CPS Abstract
Keywords: energy efficiency, energy performance certificate, hedonic price model
Energy Performance Certificate has become mandatory whenever a property is built, sold or rented in Türkiye by a regulation in 2017. In accordance with this regulation, Central Bank of the Republic of Türkiye has started to gather data on energy efficiency ratings of houses from valuation reports since mid-2019. This paper aims to examine the impact of energy efficiency on house prices in Türkiye and Istanbul between 2019Q3 and 2022Q3. Results show the evidence of price premium for energy efficient houses. Using hedonic price model, it is estimated that prices of houses with high energy performance are 5.8% and 8.1% higher than price of houses with low energy performance in Türkiye and Istanbul, respectively.