Home Buyers' Priorities Have Changed – Heating Costs Matter More Than Square Meters

Estonians' understanding of a good house has changed significantly over the past ten years. While in 2016 the focus was primarily on location, house and plot size, today purchasing decisions are increasingly influenced by energy efficiency, heating solutions, and the long-term value of the property.

According to Urmas Uibomäe, CEO of Kinnisvara24, the era of square meters has given way to the era of energy efficiency. "In the previous decade, it was important for a house to have an open kitchen-living room, at least 160–180 square meters of space, and an 800–1200 square meter plot. Today, these criteria no longer determine the purchasing decision. Home buyers are now interested in energy class, heating costs, and whether the property will retain its value even 10–15 years from now," explained Uibomäe.

Attitudes toward heating solutions have changed most clearly. Algis Liblik, a board member of Uus Maa Pro, pointed out that ten years ago, electric heating in detached houses was quite ordinary and did not evoke any particular emotions in buyers. "Today, electric heating has rather a negative reputation due to high electricity prices in recent years, and the sale of such properties takes longer than average," acknowledged Liblik.

Uibomäe added that the heating system is no longer a standalone component but part of a comprehensive energy solution. "Although in 2016, air-water heat pumps with underfloor heating were already common in new houses, they were considered more of a comfort feature. Today, heat pumps, underfloor heating, heat recovery ventilation, and solar panel readiness are part of the standard equipment of a new detached house – this is no longer an added value but an elementary requirement," explained Uibomäe.

Energy class increasingly determines purchasing decisions

Ten years ago, the energy label was for many buyers merely a formality. Today, the situation is different. Since summer last year, new detached houses with heated floor space up to 220 square meters must meet A-class requirements instead of the previous B-class, which require the use of renewable energy, such as solar panels.

According to Liblik, home buyers have become significantly more aware of energy efficiency and prefer modern solutions. "They are also very careful about documentation, as there is fear of future problems. Banks also play a role – the more energy-efficient a house is, the better loan terms are offered," noted Liblik.

The pandemic brought home offices

Although the typical detached house buyer still looks for three bedrooms and an open kitchen-living room, the logic of room usage has changed. The biggest influencer was the COVID-19 pandemic.

According to Liblik, the pandemic fundamentally changed people's living and working arrangements and, along with it, expectations for their home. Longer periods spent at home and remote work require a separate room or at least a clearly defined area for a home office.

According to Uibomäe, this does not necessarily mean larger houses. "Above all, the quality of planning has improved. A separate work room, a quiet corner for calls, a proper technical room for the heat pump and ventilation unit, and readiness for electric car charging – these are on the buyer's checklist today, no longer on their wish list."

Suburbanization with new priorities

Ten years ago, there was active detached house construction around Tallinn and Tartu – the municipalities of Rae, Viimsi, Harku, Luunja, and Ülenurme were growing rapidly, and developments were often built on former farmland. Suburbanization continues today, but the buyers' perspective has changed.

"While previously there was interest mainly in plot size and distance from the city, today people inquire about infrastructure, schools and service accessibility, and the development prospects of the area," described Uibomäe.

According to him, detached house buyers have become more informed over the past ten years, banks more demanding, and developers more professional.