Sponsored content by Effic
The importance of compliance with ESG guidelines cannot be understated, these funds allow investors to reduce their costs while improving returns from their portfolio. Additionally, it allows for improved financing solutions, for example opening access to green bonds, and better terms for insurance on portfolios, all while providing tenants a better environment to live in. These changes will allow the investor to prepare the portfolio to be liquid in the future, considering all the legislative discussions which are in progress, which are attempting to reduce the sale and rental of the non-energy efficient assets.
The European Next Generation Funds allows both individuals and institutions access to great discounts of up to 80% to rehabilitate their homes and buildings, helping at the same time to reduce the carbon footprint and energy consumption while improving the wellbeing of the tenant and enhancing the value of the homes and their surrounding communities. These grants also contemplate actions at the neighborhood level, increasing the value of the rehabilitation of those areas where joint action is taken in a specific building nucleus. Under the current guidelines of the Fund, all actions must have been completed before June 30, 2026.
With current record temperatures occurring across the world and with continual increases projected combined with the economic crisis caused by the COVID-19 pandemic, and the rest of the geopolitical and macroeconomic events that we are experiencing (from the war in Ukraine, and the issues with the global logistics network) are all causing a global escalation in prices. These changing conditions directly impact the gas and electricity prices across Europe which are expected to continue to increase. Individuals are noticing the impact on their incomes which are continually diminished by increasing expenses and/or being forced to suffer suboptimal conditions of thermal comfort (even affecting people's health). The French government has estimated that 20% of its citizens are cold in their own homes during the winter already. In this way, the improvement of the energy efficiency of homes will allow to increase efficiency while lowering the energy expenses. All these improvements while being too able to save 30% while using the funds available is an unbelievable opportunity.
Aside from reducing costs and efficiency improvement of the apartments, there exists additional opportunities to take advantage of including improved financing terms for both individuals and investors, better terms on insurance products for the energy efficient asset and availing of tax incentives provided by each country to incentivize ESG compliance.
All these benefits are prior to upcoming legislative changes which are currently in the discussion phases across all of Europe which will limit the liquidity on non-energy efficient assets, for example, in France in the legislative development phase, the proposal is to start limiting property transactions that are not properly insulated and it already foresees the prohibition of leasing buildings with energy rating G from the beginning of 2023. In the UK as well, there are discussions to start implementing these restrictions on rental and sale on non-energy efficient apartments as well.
EFFIC is specialized in the comprehensive management of rehabilitation projects, both individuals and investors are guaranteed a single interlocutor throughout this process of diagnosis and technical study, management of the subsidy and execution of the work.
EFFIC, as experts in refurbishment management and energy efficiency, is constituted as a refurbishment manager, a figure regulated by the legislation that develops the NEXT GENERATION grants in terms of efficient refurbishment, to accompany individuals and companies in the process of diagnosis, study, management of the subsidy and execution of the works. With proven experience throughout the Spanish territory, having rehabilitated more than 50,000 homes and buildings, it is offered to large companies and individuals to present them with the best rehabilitation option, taking responsibility for all the management of the subsidy, execution of eligible actions and justification of the subsidies. Likewise, it is characterized by its commitment to first-class human capital, with technical and superior architects and engineers specializing in energy efficiency with extensive experience in the sustainable construction sector, as well as its commitment to technology and optimization of its operations and transparency with its customers EFFIC additionally have agreements with the main banking entities to offer the complete package to those interested in rehabilitation and with better financing conditions than those that can be found in the market. The company continues to add partnerships for example: working with insurance companies to try and reduce the cost of insurance for its tenant and investors.
On its website, www.effic.es details the services it offers and provides information on Spanish legislation on housing renovation within the framework of the NEXT GENERATION funds, highlighting the powerful tools for calculating renovations that it makes available to the public. These tools have been developed proprietarily by the company, taking advantage of its technological know-how and the vast database of real estate and rehabilitation carried out in recent years enhance by public information from official records. EFFIC offers, completely free of charge, a preliminary diagnostic service on the state of homes and buildings with a very strict approach to eligible actions to be carried out and costs. Once the agreement is obtained, the subsidy is immediately presented to the corresponding administrative body and once approved, the execution of the plan begins.
EFFIC stands out, which has professionals specialized in energy and real estate consulting, accompanying holders on their way to improve their portfolio in terms of energy efficiency. Its mission is to advise both individuals and institutions on the most appropriate set of measures to make their homes efficient and sustainable, managing the entire life cycle of the process; from the visit to the property, green advisory, Budget, control of execution of works, management of European Union aid including the certificates that certify the improvement in the efficiency of its properties
In conclusion, are we going to let this immense opportunity pass us by? Generating a more comfortable, more efficient, ESG compliant, and more responsible real estate park is within reach. The funds are available here and now, limited and going to run out fast. Therefore, its now, or never, to take this opportunity to increase value.