Buildings’ energy performance, green attributes and real estate prices: methodological perspectives from the European literature

Abstract

Buildings’ energy efficiency may affect real estate prices, but the literature suggests that the effects of green attributes and Energy Performance Certificate ratings on the value of residential properties in Europe are still variable across contexts. The adoption of methods able to appropriately investigate this issue is thus essential. In this framework and to support future studies, this paper offers a methodological review of scientific works on the topic published in the last five years. Our work does not only represent an update of other reviews, but it originally analyses the papers by a methodological viewpoint. Results highlight a progressive refinement of the research questions and methods adopted. Then, the increasing importance of concepts such as latent variables and green attributes in the real estate pricing process is detected and identified as a field to be furtherly explored. Finally, Structural Equation Modelling is proposed as a promising approach for future studies.