The EU's strategy for more energy-efficient homes risks becoming a multibillion burden on Swedish property owners. SBAB chief economist Robert Boije warns of the potential costs, even though few Swedish homes use fossil fuels. Expert Hans Lind believes the proposal won't be implemented in its current form.
The EU is developing a strategy to reduce net greenhouse gas emissions and Europe's dependence on Russian gas by making homes more energy-efficient. The proposal requires all EU residential buildings to reach energy class D by 2033, potentially hitting residents of condominiums, rentals, and single-family homes hard, along with property owners in Sweden.
Robert Boije, chief economist at SBAB, has closely followed the plans and warns of the consequences. "It is somewhat of a bomb for the housing market, but which has largely gone under the radar in Sweden. Depending on how it is implemented, it could become costly for many property owners," he tells Dagens Industri (Di). Even though Swedish homes rarely use fossil fuels for heating, the cost for municipal housing companies alone is estimated at 200 billion kronor.
Hans Lind, former professor of real estate economics at KTH, is more optimistic. He believes politicians will ultimately soften the requirements. "In the end, politicians will realize that we cannot demand things that make houses worthless. We also cannot ruin the public housing companies," he tells Di. The proposal has so far received little attention in Sweden but could have major impacts on the housing market if strictly enforced.