The French real estate market is currently experiencing a period of falling prices, a situation which is sparking renewed interest in rental investment. Whether to build assets or generate additional income, real estate remains a safe haven. But in such a context, a central question arises: is it better to invest in a new property or in an old property to renovate?
Fall in real estate prices and uncertain context
In recent months, the real estate market has shown signs of weakening, with an estimated drop of between 7 and 8% in prices per square meter over one year. This decrease comes as interest rates begin to stabilize after several months of increases. Despite this more favorable context for buyers, economic uncertainty and regulatory constraints require a more detailed analysis of the type of investment to be favored.
On the one hand, new properties offer guarantees of quality, comfort and above all compliance with the latest environmental and energy standards, but with an initial cost higher by around 20% on average. On the other hand, old real estate often presents opportunities in terms of price and location negotiation, particularly in city centers or well-served neighborhoods. However, it almost always requires renovation work to meet new requirements in terms of energy decency, particularly from 2025 with the implementation of multi-year work plans for co-ownerships over 15 years old.
New or old: a question of location
The choice between new and old depends largely on the location of the property. Indeed, the cities where it is more interesting to invest in new buildings differ considerably from those where renovated old buildings offer better value for money.
According to a study carried out by Maslow.immo, here are the top 5 cities where it is more advantageous to invest in new buildings :
- Meyzieu – 51.19% cheaper than the old renovated one
- Bordeaux – 42.77% cheaper than the old renovated one
- Montreuil – 42.13% cheaper than the old renovated one
- Meylan – 11.39% cheaper than the old renovated one
- Clamart – 10.76% cheaper than the old renovated one
Conversely, for those who prefer to focus on old properties to renovate, here are the cities where this is most interesting :
- La Roche-sur-Yon – 23.23% cheaper than new
- Pessac – 23.06% cheaper than new
- Lyon – 14.93% cheaper than new
- Creteil – 9.20% cheaper than new
- Nice – 9.08% cheaper than new
The new: a choice of comfort, the old: an opportunity for profitability
New real estate has several undeniable advantages. In addition to the quality of materials and compliance with the latest standards (particularly energy), it also offers energy performance guarantees, essential for anticipating future regulations on thermal strainers. On the other hand, its higher acquisition cost and limited availability in city centers may deter some buyers. This type of investment is often favored in peripheral areas or new residential areas well served by public transport.
At the same time, old real estate to be renovated offers opportunities for lower prices and flexibility in negotiations. This type of acquisition, although it involves work costs (insulation, upgrades to DPE standards), can become profitable in areas with high rental pressure, where demand is high. However, rent controls in certain cities may limit expected profitability.
Ultimately, the choice between new and old depends largely on the geographical location of the property, the investment project and the profile of the buyer. New construction offers advantages in terms of comfort and peace of mind, while renovating an old one can be a more cost-effective solution in certain cities. Whatever option you choose, it is important to carefully assess renovation costs, rental tension and rent control to maximize your investment.
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