The French real estate market in 2024 has been characterized by a structural adjustment, not just a simple downward cycle. With the implementation of rental bans related to the energy performance diagnosis (DPE), the reshaping of mortgage credit, and investment strategies reinventing themselves around energy renovation, operators positioning themselves now are weighing very different parameters than those from two years ago.
DPE G rental ban: what changes with the enforcement starting January 1, 2025
The Climate and Resilience Law is no longer a distant prospect. Since January 1, 2025, all properties classified as G are prohibited from being rented for new leases, renewals, and tacit extensions in metropolitan France. This is not a warning signal; it is an immediate operational constraint.
The following timeline is already enshrined in law: properties classified as F will be banned starting January 1, 2028, and those classified as E will follow on January 1, 2034. Landlords holding a portfolio with several units classified as F or G must now choose between three options: selling at a discount, undertaking major renovations, or converting to non-rental use (primary residence, professional premises).
A point often poorly integrated into wealth management strategies: overseas departments and regions benefit from a delayed DPE timeline. G properties will not be banned from rental until January 1, 2028, and F properties until January 1, 2031. This gap creates different decision-making windows depending on the location of the property portfolio.
We observe that many landlords have been slow to anticipate these deadlines, resulting in an increase in the supply of energy-inefficient properties on the sales market, with significant discounts in certain medium-sized cities. For buyers able to finance energy renovations, these properties represent a low-cost entry point into rental investment.
Mortgage credit in 2025: recovery of production after two years of downturn
After the sharp tightening in 2023 and 2024, housing credit production saw a marked recovery, with an increase of nearly 30% in 2025 according to data reported by the Bank of France. This rebound changes the game for buyers who had been pushed out of the market by very restrictive lending conditions.
This dynamic deserves to be cross-referenced with other analyses. We recommend regularly following real estate articles on Always Unique to compare rate trends and feedback from industry professionals.
The recovery in credit does not mean a return to the volumes of 2021-2022. The market is reconfiguring around stronger borrower profiles, with higher personal contributions and longer loan durations. First-time buyers remain under pressure, particularly in metropolitan areas where the price per square meter has only partially corrected.
Mortgage rates: stabilization rather than a sharp decline
We are observing a stabilization of rates around intermediate levels rather than a true downward cycle. Banks have regained their appetite for mortgage credit, but margins remain tight. Negotiating the rate now involves the overall package: borrower insurance, income domiciliation, savings placed with the lending institution.
A borrower who only compares nominal rates misses the essential point. The total cost of credit, including guarantee fees and insurance, remains the only reliable indicator for comparing offers.
Real estate prices in France: differentiated correction depending on local markets
The national trend masks very contrasting realities. While real estate prices have decreased on average compared to the peaks of 2022, the correction has been neither uniform nor linear.
- Major metropolitan areas (Paris, Lyon, Bordeaux) have experienced significant declines in the old property market, exacerbated by a drop in transaction volumes that have fallen well below historical levels.
- Attractive medium-sized cities (Angers, Rennes, Montpellier) show relative price resilience, driven by strong local demand and a limited stock of renovated properties.
- Rural and peri-urban areas exhibit the most marked disparities: some sectors see their market freeze due to a lack of buyers, while others benefit from remote work to maintain steady demand.
The new build market remains structurally challenged, penalized by high construction costs and a pronounced decline in new housing starts. The price gap between new and old properties has widened in several urban areas, making renovated old properties more competitive for investors.
Real estate investment strategy: energy-inefficient properties and wealth management decisions
The purchase of energy-inefficient properties at discounted prices, followed by energy renovations to reclassify the property to category D or higher, has become a full-fledged investment strategy. However, it requires a precise understanding of renovation costs and the timeline for the work.
Several parameters must be checked before positioning oneself on this type of operation:
- The actual cost of renovation, including the prior energy audit and any structural surprises (impossible external insulation in co-ownership, architectural constraints in protected areas).
- Eligibility for public aid (MaPrimeRénov’, CEE), the amounts and conditions of which evolve regularly.
- The rental yield post-renovation, which must account for the vacancy period during the work and the new market rent once the property is reclassified.
- The risk of DPE reclassification in 2026, which could alter the rating of certain properties upward or downward based on the new calculation method being considered.
Real estate sale: the DPE as a negotiation lever
On the sales side, the DPE has become a major negotiation argument. A property classified as F or G is negotiated with a discount that directly reflects the estimated cost of compliance work. Informed buyers quantify the renovation before making an offer, which profoundly changes the balance of power with sellers.
The real estate market in 2024 has laid the groundwork for a sustainable reshaping. Operators who are successful are those who integrate the DPE, the real cost of credit, and local price dynamics into a single profitability calculation, without relying on national averages.