Mathew Wood from Hola Properties, headquartered in Lanjarón, explains what incoming EU energy rules mean for buyers and sellers…
IT’S CURRENTLY talked about in hushed and worried tones amongst some property owners. “Did you hear the news about the changing EU energy rules for our charming but uninsulated homes in Andalucia?” Not everyone has heard about it – because it has hardly been splashed across the Spanish media! But, yes – it’s true – a quiet change in Brussels about the EU energy rules could soon have a major impact on Spanish homeowners.
From 2030, properties with the lowest energy ratings (F or G) may no longer be legally sold or rented. By 2033, the minimum requirement rises to a D rating. “Uff”, many people might say, realising that they have 20 single-glazed windows and a ‘launa’ roof that hasn’t been resurfaced in two decades.
For buyers, this means greater confidence in running costs. For sellers, especially those with older ‘cortijos’ and village houses across the Granada hills and valleys, it could mean significant renovation bills.
What EU energy rules are changing and why does this impact Granada and Costa Tropical
Until now, Spain’s energy efficiency certificate has been little more than a colourful chart that appears in property ads. Buyers often ignored it. Sellers rarely worried about it, although it was a legal requirement to have one produced.
That will all change. Under the EU’s energy rules directive, any property below an E rating will effectively be locked from the market. You won’t be able to sell, rent, or list it for holiday lets.
This is of particular relevance in Granada and Costa Tropical. Our area, and the region’s inland villages, are full of ‘character properties’. The charming “white villages” that we all know and love almost entirely comprise whitewashed houses with single-glazed windows and basic insulation. Meanwhile, the rural ‘cortijos’ have thick stone walls but little insulation. There are also flats (‘pisos’) built in the 1960s–80s with outdated boilers.
Many of these properties score F or G on energy tests. Without upgrades, they risk becoming “stranded assets” — owned but unsellable. And statistics suggest that almost 80% of properties in Andalucia fall into the categories that are deemed as needing an upgrade! That certainly is not a fact to ignore.
The cost of compliance with EU energy rules
To raise your property from G to E or D, typical upgrades might include installing double-glazed windows, improving insulation, installing modern heating or cooling systems, solar panels, or heat pumps. Yes, that means discarding the old wood-burner and insulating the old roof that otherwise bakes you in summer!
Renovations can run from €15,000 to €50,000+, depending on property size. While grants may be available, the process is bureaucratic and evolving — it is worth checking with your gestor or town hall if anythign is available in your municipality.
What it means for sellers at present
While it is already a legal requirement to have an energy certificat4e when your property is being marketed, if you’re considering selling within the next 5–7 years, timing matters. A home rated F or G today may still find a buyer. In 2030, that buyer pool could vanish.
Accurate pricing is also critical. Buyers are already asking about energy costs, and many will factor in renovation expenses when negotiating.
It’s important to run legal and technical checks before listing. That includes reviewing the energy certificate and advising whether improvements or pricing adjustments make sense.
A smarter approach for buyers
For international buyers relocating to the Lecrín Valley, Alpujarra, or coastal towns – like Salobreña – these changes offer reassurance. By 2030, the market should be cleaner, more transparent, and easier to compare. But right now, buyers should ask directly for the energy rating, budget realistically for eco-upgrades, and consider the long-term running costs – not just the purchase price.
Don’t wait for 2030’s “eco deadline” to take action
The 2008 crash taught Spanish property owners how quickly rules can reshape the market. This time, it won’t be bank lending but energy law that decides what sells and what sits idle. It will be the EU energy rules coming upon us!
If you own a ‘cortijo’ or village home in southern Granada and are unsure of its energy rating, gain clarity now. Waiting until 2030 could mean the difference between a smooth sale and an unsellable asset.
See more market insights and guides on how upcoming EU energy rules could affect property values across southern Granada. https://holaproperties.com/articles/
