As climate change and the need for sustainable practices take centre stage, the European Union’s revision of the Energy Performance of Buildings Directive (EPBD) marks a pivotal regulatory moment. For those considering property investment in Italy, these new rules could shape both market trends and long-term returns.
Why this matters for the Italian property market
Buildings have a considerable environmental impact. According to the International Energy Agency, they account – directly and indirectly – for around one-third of global CO₂ emissions from energy and industrial processes. Around 11% of this comes from producing construction materials, known as “embodied carbon”.
Italy’s building stock is particularly old – over 60% of homes were built before 1970 – and many properties lack proper insulation or efficient heating systems. While this presents challenges, it also creates significant opportunities for investors willing to modernise or renovate in line with the new EU standards.
The revised EPBD, part of the Fit for 55 climate package, aims to boost both new-build and renovation projects that achieve high energy performance. For buyers, this could mean better long-term value, reduced running costs, and a property that’s more attractive on the resale market.
The key changes in the new EPBD
- Minimum Energy Performance Standards (MEPS): From 2030, all new buildings in the EU must be zero-emission, with no fossil-fuel heating. By 2033, at least 25% of the least efficient properties must be upgraded.
- Energy Performance Certificates (EPCs): These ratings, already mandatory in Italy when buying or renting, will gain even more importance as buyers and tenants increasingly look for efficient homes.
- Renovation of Existing Stock: With 85% of EU buildings – and an even higher percentage in Italy – built before 2000, large-scale modernisation is essential.
- Electric Mobility Infrastructure: Charging points will be required in new builds and major renovation projects.
- Sustainable Heating and Cooling: Incentives will support the adoption of heat pumps, solar panels and other renewable technologies.
Deadlines and targets that affect property owners in Italy
The updated directive speeds up the timeline: by 2030, 15% of the least efficient properties must reach at least energy class E, and class D by 2033. Nearly half (49%) of the energy used in new or fully renovated buildings must come from renewable sources.
For Italy, this could drive a surge in energy-efficiency upgrades, especially in cities like Rome, Florence and Milan, and in sought-after rural areas where foreign buyers often purchase traditional farmhouses (casali) or villas in need of restoration.
How Italy compares to other EU countries
Southern European countries like Italy and Spain face similar challenges – older building stock, high seasonal energy consumption, and a climate ideal for solar energy. This means that, while the transition requires significant investment, the potential energy savings and added property value are substantial.
What this means for foreign investors in Italy
If you are considering buying property in Italy – whether a holiday home in Tuscany, a lakeside villa in Lombardy, or a pied-à-terre in Rome – compliance with the EPBD could become a major selling point in the years ahead.
- Opportunities: Properties upgraded to meet EU standards are likely to see increased demand, lower running costs, and higher resale value.
- Risks: Homes that do not meet the new criteria could face reduced market appeal and lower valuations.
To stay ahead, investors should seek professional advice, factor in renovation costs from the start, and explore incentives such as Italy’s Superbonus or regional tax credits for energy improvements. Integrating voluntary frameworks such as the Carbon Risk Real Estate Monitor can also help ensure a truly future-proof portfolio.