Stay informed about the latest legal developments in the valuation market. These changes significantly impact property values and valuation procedures. Learn how to prepare optimally.
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The topic briefly and concisely
The ImmoWertV 2021 and the JStG 2022 have significantly altered the foundations of real estate valuation in Germany, often resulting in higher values.
EU directives such as the EPBD and the EU Taxonomy set new, stringent requirements for the energy efficiency and sustainability of buildings, which directly impact their assessment.
Increasing CO2 prices and the Building Energy Act (GEG) are putting pressure on energy-efficient renovation and influencing the attractiveness and value of properties.
The real estate market is constantly evolving, not least due to new legal frameworks. Especially the legal developments in the valuation market have gained momentum in recent years. It is crucial for owners, heirs, and investors to understand these changes, as they have a direct impact on property values and valuation methodologies. This article highlights the key innovations, from the ImmoWertV to EU-wide directives, and demonstrates how digital solutions like those from Auctoa can help you keep track and make informed decisions. An accurate valuation is often the first step towards a successful transaction or a solid wealth plan.
Key Points: Core Changes in Valuation Law
The recent legal developments in the appraisal market bring significant adjustments. The amendment of the Real Estate Valuation Ordinance (ImmoWertV) since 1 January 2022 standardises valuation principles nationwide. In parallel, the Annual Tax Act 2022, effective since 1 January 2023, has adapted tax valuation parameters to the current market conditions, often leading to higher property values. At the EU level, the Energy Performance of Buildings Directive (EPBD), in effect since May 2024, is promoting energy refurbishment and thus influencing values in the long term. The EU Taxonomy Regulation and CSRD reporting obligations also increase the requirements for sustainability assessments of properties for many companies since 2024. These changes require continuous adaptation and precise data foundations for each property valuation.
ImmoWertV and JStG 2022: New Valuation Bases in Germany
The Immobilienwertermittlungsverordnung (ImmoWertV 2021), which came into effect on 1 January 2022, is a central pillar of current legal developments in the valuation market. It consolidated five previous guidelines and aims for a more uniform nationwide determination of market values. In addition, in September 2023, the Model Application Notes (ImmoWertA) were published to deepen understanding. In practice, this means greater consideration of energy characteristics and future area development. The standard construction costs NHK 2010 continue to be relevant for the time being, as new NHK have not been finalised before 31 December 2024.
In parallel, the Annual Tax Act 2022 (JStG 2022), valid since 1 January 2023, affects tax valuation. A significant change is the increase in the standard total useful life for residential properties from 70 to 80 years. This tends to lead to longer remaining useful lives and thus higher taxable values, particularly relevant in cases of inheritance and gifts. The law also adjusts the cost and income approaches, for example by introducing regional factors and adjusting maintenance costs. These adjustments can change the taxable value of your property by up to 20%. Thorough knowledge of these legal conditions is essential. The complexity underscores the need for expert knowledge, as Auctoa offers with data-driven analyses.
EU directives: Taxonomy, CSRD, and the new building directive (EPBD)
At the European level, three initiatives primarily shape the legal developments in the valuation market. The EU Taxonomy Regulation, in force since 2020 and applicable for reports from the fiscal year 2024, classifies economic activities based on their sustainability. For the real estate sector, this means that new construction, renovation, and ownership must meet certain criteria to be considered sustainable. For instance, buildings erected before 31 December 2020 must either have an energy efficiency class A or belong to the top 15% of the national stock.
The Corporate Sustainability Reporting Directive (CSRD) significantly expands reporting obligations. As of 1 January 2024, large companies with over 500 employees or specific turnover or balance sheet totals are affected; this involves around 14,600 German firms. They must report in detail on sustainability aspects, which impacts the valuation of corporate real estate. From 2025 and 2026, the requirements will be extended to additional business groups.
The revised EU Building Directive (EPBD, (EU) 2024/1275) came into force on 28 May 2024 and must be implemented nationally within two years. Its goal is a climate-neutral building stock by 2050. This involves ambitious objectives:
New public buildings must be zero-emission buildings from 2028, all other new buildings from 2030.
The average primary energy consumption of residential buildings should decrease by 16% by 2030 and by 20-22% by 2035 (based on 2020).
Non-residential buildings have thresholds that must be exceeded by 2030 (top 16% of the stock) and by 2033 (top 26%).
A solar system requirement will be gradually introduced for various building types and sizes, starting at the end of 2026.
The EPBD will significantly increase renovation rates and thus tighten the valuation standards for energy efficiency. The Auctoa ImmoGPT function can help you analyze the impact of these EU directives on your specific property.
Further relevant legal changes and their impacts
Alongside the major reforms, there are other significant legal developments in the valuation market. The Building Energy Act (GEG 2024), in effect since 1 January 2024, mandates that new heating systems in new buildings must be operated with at least 65% renewable energy. This directly impacts the additional costs and the value of new build properties. The Heat Planning Act, also effective since the beginning of 2024, requires municipalities to develop heat plans – by June 2026 for cities with over 100,000 residents and by June 2028 for smaller municipalities. This will affect future heat supply and consequently property values in affected areas.
The CO2 price increased to 45 euros per tonne on 1 January 2024 and will rise further to 50 euros per tonne in 2025. This cost increase directly impacts heating costs and makes energy-efficient properties more attractive. The property tax reform, which takes effect from 1 January 2025, will base property tax calculations on a new foundation, possibly leading to different regional burdens. Relevant for businesses is also the obligation for e-invoicing in the B2B sector from 1 January 2025. The sum of these changes requires a re-evaluation of many cost factors in property calculations.
Practical implications for property owners and investors
The described legal developments in the valuation market have tangible consequences. The energy requirements are rising significantly, increasing the pressure to refurbish existing properties. Up to 14 million buildings in Germany alone could be affected by the EPBD regulations. Properties with poor energy efficiency could experience a loss in value if not modernised in time. The costs for refurbishments must be included in the valuation. An accurate appraisal preparation becomes more complex.
The following aspects are now central to the valuation:
Energy efficiency: The energy performance certificate and the fulfilment of efficiency classes (e.g., D by 2033 for residential buildings) are crucial.
Sustainability criteria (ESG): Especially for portfolios and corporate real estate, ESG factors gain importance due to taxonomy and CSRD.
Life cycle costs and GWP: The global warming potential (GWP) of the lifecycle must be calculated for new buildings from 2028/2030 onwards.
Heating systems: The phase-out of fossil heating systems by 2040 and the promotion of 65% renewable energy in new building heating systems influence value.
CO2 costs: Rising CO2 prices make energy-efficient buildings more economical.
The failure to meet new standards can lead to devaluations of over 10%. The Auctoa valuation takes these dynamic factors into account, providing you with a solid basis. The complexity of the new regulations makes a professional, data-driven valuation essential to minimise risks and seize opportunities. The new regulations require proactive action.
Auctoa: Your partner in the evolving appraisal market
In light of the various legal developments in the valuation market, property owners and investors face challenges. How do you keep track and make informed decisions? Auctoa supports you as a digital companion with objective, AI-assisted property valuations. Our algorithms take into account current legal changes, market data, and individual property characteristics to provide you with an accurate valuation. This way, you can better assess the impact of ImmoWertV, EPBD, or GEG on your property.
Planning a gift or inheritance? The JStG 2022 has changed the tax valuation, often resulting in higher values than before. A current, market-based valuation from Auctoa can help you meet your tax obligations correctly and avoid surprises. Our valuations provide you with the necessary transparency. You can also use our ImmoGPT chat for quick answers to your questions about the valuation guidelines. An Auctoa valuation can save you up to 15% time in decision-making.
rechtliche-entwicklungen-im-bewertungsmarkt
The legal developments in the valuation market are comprehensive and dynamic. From the national ImmoWertV and tax adjustments through the JStG 2022 to far-reaching EU directives like the EPBD and EU taxonomy – the demands on properties and their valuation are continuously increasing. For owners, heirs, and investors, this means that simply considering location and amenities is no longer sufficient. Energetic standards, sustainability aspects, and life cycle costs are moving to the centre of valuation. These factors can influence a property's value by 10-25%.
It's crucial to address these changes early and to act proactively. A professional, data-driven valuation, like the one offered by Auctoa, is an important part of this process. It creates transparency and provides a solid foundation for sales decisions, investment planning, or tax matters. Take advantage of the opportunities that arise from a deep understanding of the current valuation landscape. Stay informed and actively shape the future of your property values!
Additional useful links
KPMG highlights five key topics for the German real estate market in 2025.
Gleiss Lutz offers an update on real estate law 2025 and demonstrates opportunities through the changes.
Gesetze im Internet provides the regulation on determining the mortgage value of properties (BelWertV).
Statistisches Bundesamt (Destatis) provides current data on construction prices and the property price index.
Deutsche Bundesbank publishes its financial stability reports, which offer important insights into market developments.
FAQ
What role does the CO2 price play in property valuation?
The rising CO2 price (2024: €45/tonne, 2025: €50/tonne) increases the ongoing costs for fossil heating systems. This makes energy-efficient buildings with low emissions more attractive and can diminish the value of less efficient properties.
Do all buildings need to be retrofitted for energy efficiency?
The EU Building Directive provides for gradual minimum standards for energy efficiency (e.g., for residential buildings, Class E by 2030 and Class D by 2033). This creates a need for refurbishment for a significant portion of the stock, particularly for the least energy-efficient buildings.
What does "zero-emission building" mean?
A zero-emission building has a very high overall energy efficiency, causes no on-site CO2 emissions from fossil fuels, and has little to no operational greenhouse gas emissions. The energy demand is primarily met by renewable energies.
How does Auctoa assist with these legal developments?
Auctoa provides AI-powered real estate valuations that take into account current legal changes and market data. Our analyses help you understand the impact of complex legal developments on your property's value, enabling you to make informed decisions.
What are the ImmoWertA?
The ImmoWertA are sample application guidelines for the Property Valuation Ordinance (ImmoWertV). They were published on 20th September 2023 and serve to improve understanding and the uniform application of the ImmoWertV 2021.
When does the obligation to issue electronic invoices begin?
The obligation for electronic invoicing (e-invoicing) in the B2B sector in Germany takes effect from 1 January 2025.
