In 2023, the green value of housing will emerge as a key criterion in the French real estate market. While the energy transition is changing habits, energy-efficient housing (labels A and B) benefit from a significant premium. While energy-intensive goods (classes F and G) suffer a marked depreciation. This observation, resulting from the study carried out by the Superior Council of Notaries, highlights the growing economic and environmental impacts of the energy label. This article explores regional trends and implications of green value in 2023 on the prices of old real estate.
Summary :
The distribution of housing according to their energy label
In 2023, in mainland France, energy labels continue to play a leading role in the distribution of old real estate transactions. Energy-intensive housing (classes F and G) represents 17% of sales. This figure remains high although it has stabilized compared to the previous year.
This trend can be explained by several factors. First of all, the Energy Performance Diagnosis (EPD) evaluation thresholds were modified in 2021, making the criteria more strict. Then, the entry into force of rental restrictions for “thermal strainers” also contributed to this development. These two elements combined reinforce the impact of energy performance on the real estate market.
Regional distribution: marked contrasts
Analysis of regions reveals striking disparities. In Paris, for example, 31% of sales concern housing classified F and G, compared to only 9% in Provence-Alpes-Côte d’Azur. This contrast can be explained by the age of the Parisian real estate stock. In fact, modernization is more expensive there due to the architectural specificities of historic buildings.
In Occitanie, on the other hand, 11% of transactions involve economical housing (classes A and B). Indeed, this region stands out thanks to regional policies which encourage recent construction. In addition, increased awareness among owners of the importance of energy renovations reinforces this dynamic.
Note that certain departments such as Cantal and Creuse show spectacular differences. Since sales of energy-intensive housing are up to ten times more frequent than those of energy-efficient housing. This situation illustrates the structural challenges of rural areas, where energy renovations are often considered unprofitable.
Price developments based on green value in 2023
In 2023, green value will assert itself as a determining factor in real estate transactions. Economical housing (classes A and B) continues to benefit from a significant premium. While energy-intensive goods are subject to accelerated depreciation.
A bonus for economical housing
The data shows that thrifty homes sell for between 6% and 18% more than similar D-rated properties, depending on region. In Occitania, this premium reached a record level (+18%). This reflects a growing demand for goods offering energy savings and a better carbon footprint. Similarly, apartments classified A or B benefit from a bonus of +20% in Provence-Alpes-Côte d’Azur and Auvergne-Rhône-Alpes. Which confirms that energy performance is now an essential criterion for buyers.
A discount for energy-intensive housing
Energy-intensive goods, for their part, are experiencing increasing depreciation. Houses classified F or G in Burgundy-Franche-Comté show a decrease of -23%. While apartments in Hauts-de-France saw their price decrease by -16%. These discounts are accentuated by the regulations on “thermal strainers”. In this, they reflect a growing disaffection among buyers for these goods. Renovation costs, often prohibitive, dissuade buyers from investing in these homes.
Price variations are also influenced by the location and typology of goods. In Île-de-France, for example, energy-intensive apartments suffered a drop of -11%. However, this phenomenon results from the combination between the age of the real estate stock and local regulatory constraints.
Focus on small areas and specific geographic areas
Small areas (less than 40 m²) constitute a particularly vulnerable category in terms of green value in 2023. Indeed, these housing units are often found in old buildings. In addition, they are over-represented in classes F and G, which accentuates their energy vulnerability. Thus, almost 52% of small property transactions concern energy-intensive housingcompared to only 12% for classes A and B.
Small areas: goods under pressure
Prices of old apartments of less than 40 m² fell by 8% in 2023 for energy-intensive housing. While those for economical housing increased by 2%. This trend highlights the difficulty of renovating small areas. In fact, the costs of upgrading can represent a disproportionate share compared to the value of the property.
Specific areas: coastline and mountains
The coastal and mountainous areas offer contrasting perspectives. Thus, in coastal areas, economical housing predominates. In Hérault, for example, 50% of transactions concern A or B properties. In contrast, in mountainous areas, such as Savoie or Hautes-Alpes, energy-intensive housing dominates (up to 84% of transactions in some departments). These disparities can be explained by local dynamics. On the one hand, the coastline benefits from strong tourist attractiveness. On the other hand, the mountain is marked by the aging of its real estate stock.
The economic and environmental implications of green value in 2023
The rise of green value in 2023 does not only impact house prices. Since it is also part of a broader context of energy transition and the fight against climate change.
A transformation of the real estate portfolio
Recent regulations, such as the ban on renting G-rated accommodation since 2023, are incentivizing landlords to undertake costly renovations. This work, although expensive, can significantly increase the value of properties on the market. Furthermore, owners are increasingly aware of the financial assistance available, such as MaPrimeRénov’, which makes it possible to reduce renovation costs.
Benefits for occupants and the environment
For occupants, energy-efficient housing reduces energy bills and improves thermal comfort. Nationally, modernizing the building stock plays a key role in reducing greenhouse gas emissions. Furthermore, it makes it possible to align France’s environmental objectives with its European commitments.
