Imminent ban on G housing: a major upheaval for the French real estate market!
From 2025, saying goodbye to G-rated housing rentals will become an unavoidable reality in France. A significant reform is about to transform the rental market: from January 1, 2025, it will be prohibited to rent housing with a G rating in the energy performance diagnosis (EPD). This measure, which concerns nearly 600,000 homes in the territory, promises to redefine housing standards and significantly impact the real estate sector already plagued by uncertainties.
Also read:
A market under tension in the face of new regulations
The transition to a total ban on rentals housing G presents the real estate market with a major challenge. As this deadline approaches, owners and tenants must prepare for a reality where flexibility will be less and obligations more strict. The announced end to the rental of these properties raises questions about the future availability of affordable housing and the long term effects on existing rents.
The approach of the deadline and its direct consequences
The owners of G-rated accommodation find themselves in a delicate position: they must choose between undertaking costly renovation work or removing their properties from the rental market. This dilemma is exacerbated by the risk of these accommodations being deemed indecent if nothing is done, which could lead to legal proceedings and forced rent reductions. This situation creates a climate of urgency and hasty decisions in an already volatile market.
Sales dynamics and price implications
The announcement of this measure had an immediate effect on the real estate sales market, with a notable increase in listings for sale in 2021 and 2022. However, despite a drop in prices, sales are not taking off. The impact of the energy label continues to influence housing prices, with energy-intensive properties selling less well and at a slower rate, even with favorable interest rates.
Who are the buyers of these risky goods?
The profiles of buyers of these properties are varied, ranging from first-time buyers open to the idea of long-term renovations, to investors looking to take advantage of tax deductions and renovation aids like MaPrimeRenov. This overview of buyers shows a diversity of approaches and long-term plans regarding investing in initially less attractive properties.
Opportunities and challenges for investors
Despite the challenges, energy-intensive goods present opportunities for investors, particularly with the announced disappearance of the Pinel system for new properties. The attraction for these investments remains, supported by the prospect of carry out renovations which would increase the value of properties and improve their energy performance.
Generational impact and future prospects
A generational transfer is taking place on the market, with sellers often older and young and dynamic buyers. This dynamic could influence the future composition of the French real estate stock, with potential modernization on the horizon thanks to younger generations ready to invest in renovation.
A significant discount for poorly classified properties
Properties classified F and G undergo a average discount of 16% compared to higher rated properties, illustrating the direct impact of energy efficiency on property values. This factor is crucial for understanding buying and selling strategies in a context of increased regulations and growing environmental sensitivity.
Property prices are collapsing in these cities, unlocking unique purchasing opportunities for buyers
This article explores the imminent impact of the rental ban on G-rated housing in France, highlighting the major challenges for landlords and opportunities for investors. With a radical transformation of real estate market standards in sight, this measure promises to redefine real estate management and investment strategies in the years to come.
