In accordance with the regions in force on 1st January 2016.
DINAMIC suggests a new way of estimating the “green value” of properties, that is to say the adjustment of their value created by their energy performance. Energy Performance Certificates (EPCs) are filled with more information, which allows results for a single year (2014) to be presented and at a more detailed geographical level - that of the new administrative regions that come into force on 1st January 2016.
- SOURCES AND METHOD
The work was carried using the BIEN and PERVAL databases which contain, respectively, data ente-red by notaries in Greater Paris and the French Provinces; they show transfers of older properties (for tax purposes) against payment during 2014.
The method used to measure the green value uses econometric techniques (so-called “hedonic”) similar to those for calculating the INSEE Notary indexes. It breaks down the price of each property by placing a value on each of its components. Because of the relationship between two categories - energy and climate - only one of them - energy -is included in the model. The energy category is directly related to the individual consumer, while the climate category, which measures the emission of greenhouse gases, and concerns it only more indirectly and less instantaneously; its impact on a property’s value is thus probably lower.
In Brittany, a house whose energy rating is C has sold for 7 % more than a house whose rating is D, all things being equal (within the limits of the information available in the notarial databases). The lack of data means that the model has not revealed any significant effects; for example, the case of A-B ratings in the North and the East.
The DINAMIC results can be found at notaires.fr under the ‘Immobilier’ tab. This comprehensive study will be available in late October, and will include details for apartments.
DINAMIC : Established in 2010 by the French Higher Council of Notaries (Conseil Supérieur du Notariat / CSN) and the Chamber of Notaries of Paris with the support of the long-term public investor, la Caisse des Dépôts, the DINAMIC (Développement de l’information notariale et de l’analyse du marché immobilier et de la conjoncture) Association collects notarial information and analyses the property market and economic conditions, aiming to consolidate research and development using the BIEN and PERVAL notarial databases.
- Seasonally corrected prices
In the same way that the calculation of the indexes makes it possible to strip out struc-tural effects, the seasonal corrections are intended to correct seasonal fluctuations. The purpose is to ensure a fair comparison of trends between two consecutive quarters, without this interpretation being distorted by the time of year. For example, each year the property prices rise during the third quarter (particularly those of houses) due to the demand from families driven by the school year.
- Median prices
The INSEE Notary indexes are available only in those geographical regions in which the number of transactions is sufficiently high. At more detailed levels, median prices are used. The median price is the price at which 50 % of transactions have been made at a lower price and 50 % at a higher price. It represents the “midpoint” of the market in a more representative way than the average as it is less affected by extreme values.
- INSEE Notary indexes
The calculation method used for the INSEE Notary indexes is based on econometric models which break down the price of a property according to its main characteristics (location, size, comfort, etc.) in order to be better able to withstand structural effects that cause prices to vary from quarter to quarter.