A landlord renting out an apartment rated G will face a rental ban at the beginning of 2025. This is no longer a distant threat: the first effects of this regulatory constraint reshaped the real estate market as early as 2024, well before the deadline. Understanding the real estate trends of this year requires starting from these ground realities, not from grand speeches about “recovery”.
Thermal sieves and depreciation of F and G rated properties in 2024
On the ground, it is observed that properties labeled F and G in the old market are increasingly difficult to sell. According to the Ministry of Ecological Transition, the decline in sales of these homes accelerated in 2024, with a depreciation significantly more pronounced than for other energy classes.
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Specifically, buyers are factoring in the cost of renovation work into their offers. Real estate agencies are witnessing a rise in “to renovate” sales, where the listed price no longer corresponds to the property’s usable value without heavy intervention.
For landlords, the situation is even more constraining. The rental ban on G-rated properties starting in 2025 is pushing many of them to sell rather than renovate, fueling an influx of energy-consuming properties onto the resale market. This mechanism has contributed to driving prices down in certain segments of the old market, particularly in suburban areas. You can find all the news from Leader Immobilier detailing these market movements over the months.
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Transactions in the old market: a correction that industry players describe as historic
Notaries in France are not talking about a simple slowdown. They describe 2024 as a year of historic correction in transaction volumes. The number of sales of old homes has fallen significantly below the average of the last ten years.
This decline particularly affects suburban areas, where rising interest rates have most reduced households’ purchasing power. Buyers who could have positioned themselves two years ago are holding back, either due to lack of financing or waiting for prices to stabilize.
A two-speed market depending on location
In major metropolitan areas, demand remains strong for well-located properties in good energy condition. Recent or renovated apartments with a favorable energy performance certificate find buyers within reasonable timeframes.
In contrast, in medium-sized towns and rural areas, sales timelines have significantly lengthened. Agencies must adapt their pricing strategy from the moment of listing, or risk seeing the property stagnate for months.
- Properties rated A to D sell faster and at more stable prices than the average of the old market.
- F and G rated homes face dual pressure: depreciation at purchase and renovation obligations for future buyers.
- Suburban areas account for the majority of the decline in transactions, with a growing gap compared to city centers.
Training and digitalization: what is changing for real estate agents in France
The contraction of the market is pushing professionals to rethink their practices. There is a noticeable rise in digital tools in the daily management of agencies: automated estimates, virtual tours, electronic signature of mandates.
These tools do not replace fieldwork, but they help to reduce processing times for files and better qualify buyers in advance. Feedback on this point varies depending on the size of the agency and the client profile.
The law and continuing education obligations
The law requires real estate agents to undergo continuous training. In 2024, themes related to energy renovation and energy performance certificates have taken center stage in the programs. An agent who does not understand the implications of an F or G rating on a property’s value loses credibility with increasingly well-informed buyers.
Real estate investment in 2024: balancing rental yield and regulatory constraints
For investors, 2024 has been a year of reassessment. The rise in interest rates has reduced the leverage effect of credit, and new constraints on thermal sieves have altered the profitability calculations.
A rental investment in an old property now requires incorporating the energy renovation budget right from the purchase phase. A property rated E or better remains the comfort threshold to secure a rental investment without the risk of a short-term ban.
- Check the energy performance rating before any purchase offer, anticipating the rental ban thresholds (G in 2025, F expected thereafter).
- Incorporate the cost of renovations into the financing plan, not as an option but as an essential item.
- Prioritize areas where rental demand exceeds supply to limit the risk of vacancy after renovations.
The real estate market in France in 2024 is not one of a brutal crisis, but of a deep restructuring. Industry players who adapt to the new energy performance certificate rules, the decline in volumes, and the digitalization of practices are better positioned than those waiting for a return to the pre-2022 normal. The next step, with the rental ban on F-rated properties, will extend this sorting dynamic between renovated properties and downgraded ones.