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How Energy Retrofit Maintenance Affects Residential Buildings Market Value?

Author

Listed:
  • Umberto Mecca

    (Department of Structural, Geotechnical and Building Engineering, Responsible Risk Resilience Centre, Politecnico di Torino, Corso Duca degli Abruzzi 24, 10129 Torino, Italy)

  • Giuseppe Moglia

    (Department of Structural, Geotechnical and Building Engineering, Responsible Risk Resilience Centre, Politecnico di Torino, Corso Duca degli Abruzzi 24, 10129 Torino, Italy)

  • Paolo Piantanida

    (Department of Structural, Geotechnical and Building Engineering, Responsible Risk Resilience Centre, Politecnico di Torino, Corso Duca degli Abruzzi 24, 10129 Torino, Italy)

  • Francesco Prizzon

    (Interuniversity Department of Regional and Urban Studies and Planning, Responsible Risk Resilience Centre, Politecnico di Torino, Viale Mattioli 39, 10125 Torino, Italy)

  • Manuela Rebaudengo

    (Interuniversity Department of Regional and Urban Studies and Planning, Responsible Risk Resilience Centre, Politecnico di Torino, Viale Mattioli 39, 10125 Torino, Italy)

  • Antonio Vottari

    (Department of Structural, Geotechnical and Building Engineering, Responsible Risk Resilience Centre, Politecnico di Torino, Corso Duca degli Abruzzi 24, 10129 Torino, Italy)

Abstract

By now, it is clear the built environment could play an important role in fighting climate change, since it accounts for around 39% of global energy-related carbon emissions. Generally speaking, Italian residential stock is over 50 years old and around 16% of that needs large interventions due to its poor maintenance condition. So, the maintenance in this context can play a pivotal role in acheiving both energy efficiency and asset valorization. Introduced by a reference framework for the question in the title, this paper presents the case study: a portion of a working-class neighborhoods near the metropolitan city of Turin, marked by very recurrent typologies for the period (early seventies). The local real estate market is discussed to investigate the extraordinary maintenance impact on the property values: the paper considers the market value increase due to the energy class upgrade and the external look improvement. Individual owners putting money on this group of works get a very cost-effective investment and take advantage of Italian legislation supporting these kinds of interventions: the whole is greater than the sum of its parts and in turn greater than the cost assumed for the renovation work.

Suggested Citation

  • Umberto Mecca & Giuseppe Moglia & Paolo Piantanida & Francesco Prizzon & Manuela Rebaudengo & Antonio Vottari, 2020. "How Energy Retrofit Maintenance Affects Residential Buildings Market Value?," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:5213-:d:376628
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    References listed on IDEAS

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    1. Fabrizio Battisti & Orazio Campo, 2019. "A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    2. G. Sirmans & Lynn MacDonald & David Macpherson & Emily Zietz, 2006. "The Value of Housing Characteristics: A Meta Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 33(3), pages 215-240, November.
    3. Benedetto Manganelli & Pierluigi Morano & Francesco Tajani & Francesca Salvo, 2019. "Affordability Assessment of Energy-Efficient Building Construction in Italy," Sustainability, MDPI, vol. 11(1), pages 1-17, January.
    4. Meese, Richard A & Wallace, Nancy E, 1997. "The Construction of Residential Housing Price Indices: A Comparison of Repeat-Sales, Hedonic-Regression and Hybrid Approaches," The Journal of Real Estate Finance and Economics, Springer, vol. 14(1-2), pages 51-73, Jan.-Marc.
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    Cited by:

    1. Ana Paola Vargas & Leon Hamui, 2021. "Thermal Energy Performance Simulation of a Residential Building Retrofitted with Passive Design Strategies: A Case Study in Mexico," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    2. Darija Gajić & Slobodan Peulić & Tim Mavrič & Anna Sandak & Črtomir Tavzes & Milica Malešević & Mladen Slijepčević, 2021. "Energy Retrofitting Opportunities Using Renewable Materials—Comparative Analysis of the Current Frameworks in Bosnia-Herzegovina and Slovenia," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    3. Sebastiano Carbonara & Marco Faustoferri & Davide Stefano, 2021. "Real Estate Values and Urban Quality: A Multiple Linear Regression Model for Defining an Urban Quality Index," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    4. Anqi Wang & Yanhua An & Shuhua Yu, 2023. "Research on the Evaluation of Green Technology Renovation Measurement for Multi-Storey Houses in Severe Cold Regions Based on Entropy-Weight-TOPSIS," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    5. Isabella M. Lami & Beatrice Mecca, 2020. "Assessing Social Sustainability for Achieving Sustainable Architecture," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    6. Alessia Gotta & Umberto Mecca & Manuela Rebaudengo, 2023. "Switching from Risks to Opportunities: The Application of a Superbonus Tax Incentive to Heritage Buildings from the 1960s in Fragile Mountain Contexts," Land, MDPI, vol. 12(6), pages 1-14, May.

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