«Green» renting: are tenants in Greece ready to pay more for energy class

The rental market in Athens is changing. If a tenant previously only looked at the rental price (misthoma), today the key indicator is the “total cost of living,” which also includes utility payments. In the context of the energy crisis, when electricity bills can reach hundreds of euros per month, a flat’s energy efficiency becomes a powerful competitive advantage for the landlord.

New Tenant Profile

“Digital nomads,” employees of international corporations, and expats from Northern Europe are moving to Athens en masse. This category of residents is accustomed to a high standard of comfort. They are not willing to tolerate the cold in winter, dampness, and street noise — typical companions of the old housing stock. For such a tenant, an A+ class apartment is not a luxury, but a basic requirement. They are ready to overpay 100–150 euros in rent, knowing they will save 200 euros on air conditioning and heating bills.

The Math of Profitability for the Investor

Let’s face it: an apartment in a new building costs more. Does it pay off when renting it out?

1. Lower Vacancy Rate. Energy-efficient apartments are rented out faster. During the winter, apartments with classes G and F can stand idle for months because potential tenants fear heating bills. A+ apartments are in demand all year round.
2. Long-Term Contracts. Tenants who are comfortable (warm, dry, quiet) tend to rent housing for a long term (3–5 years). In the old housing stock, tenant rotation is more frequent, as people move out at the first opportunity due to discomfort.
3. Less Depreciation. As we discussed in the review on the advantages of A+ class, modern systems (thermal facades, quality windows) require less current maintenance. In an old building, the landlord constantly fixes leaky pipes, boilers, or deals with mold at their own expense.

Future-Proofing Asset Liquidity

Beyond immediate rental income, energy efficiency plays a crucial role in capital preservation and future resale value. The European Union is progressively tightening regulations regarding the energy performance of buildings, aiming for a carbon-neutral stock by 2050. Investors holding older, energy-inefficient properties face the risk of owning «stranded assets»—properties that will eventually require massive, mandatory capital injections to meet minimum legal standards or face heavy taxation. By investing in A+ class real estate now, landlords are not just securing higher current yields but are also insulating their portfolios against future regulatory risks, ensuring the asset remains liquid and highly attractive to buyers in the years to come.

The Emergence of a Two-Tier Market

Consequently, the Athens real estate sector is witnessing a rapid polarization, effectively splitting into a «two-speed» market. On one side, there is the modern, sustainable housing stock that commands a significant «green premium» and attracts solvent, reliable tenants. On the other, the aging stock is beginning to suffer from a «brown discount,» forcing landlords to lower rents to compete. Tenants are becoming increasingly educated; they now treat the Energy Performance Certificate (EPC) with the same importance as the floor plan or location. For the modern investor, this shift signals that energy efficiency is no longer merely an optional bonus, but the fundamental baseline for a viable, long-term rental business model.

Thus, although the entry ticket for investing in new buildings is higher, the Net Operating Income over a 10-year period proves to be higher and more stable. A “green” certificate becomes a mark of quality, allowing one to justify a premium rental rate even in less central areas.