The French real estate market is undergoing a period of restructuring. Interest rates, after a significant rise, remain at levels that weigh on households’ borrowing capacity. At the same time, the energy performance schedule is changing the rules of the game for landlords: properties classified as G can no longer be rented out from January 1, 2025, and F will follow in 2028.
Buying, selling, or investing in this context requires mastering parameters that have changed in just a few years.
EPC and energy performance: the filter that redefines every real estate project
Even before discussing budget or financing, the energy performance diagnosis now conditions the feasibility of a project. For a buyer, the energy label determines the actual acquisition cost: a property classified as F or G implies renovation work that must be included in the overall budget, or else it cannot be rented out or will suffer a depreciation upon resale.
For a seller, the reform of the EPC that came into effect on January 1, 2026, changes the game. Some properties heated by electricity may see their label change without any work, thanks to the new coefficient applied to electric energy. Before setting a sale price, it is necessary to check if a new diagnosis or an updated certificate is required. Platforms like https://ambitionimmo.fr/ help structure this reflection ahead of a sale or purchase.
The regulatory schedule does not stop there. Properties classified as E will be affected by the rental ban starting in 2034. An investor buying a property classified as E today to rent it out has a window, but it is closing. The gross rental yield is no longer enough to evaluate an investment: it is necessary to add the estimated cost of compliance work and the risk of rental vacancy during the renovations.
Real estate purchase budget: what borrowing capacity does not reveal
Borrowing capacity remains the starting point for any purchase project. It is calculated based on net income, recurring charges, and the maximum debt ratio accepted by banks. This calculation gives a theoretical ceiling.
The problem is that this ceiling does not reflect the actual budget. Several items reduce the amount actually available for the property itself:
- Notary fees, which represent a significant part of the price in older properties, lower in new ones
- The cost of energy renovation work, which has become almost systematic for older properties classified as D or below
- Loan guarantee fees (mortgage or surety) and borrower insurance, whose weight varies according to age and health status
- The possible need to maintain a precautionary savings, which some institutions explicitly require
A purchase budget is built by subtracting these items from the borrowable amount, not by discovering them after signing the preliminary agreement. The classic mistake is to look for properties at the ceiling price of one’s borrowing capacity, without margin to absorb these additional costs.
Renovation aids: tightened conditions
Buyers relying on MaPrimeRénov’ to finance part of the work must check the current eligibility conditions. From September 30, 2025, only properties classified as E, F, or G before work can benefit from the supported pathway for extensive renovation in individual houses. A property classified as D no longer qualifies for this scheme, which alters the profitability calculation of a purchase with work.
The theoretical amount of aid displayed on simulators does not always correspond to the amount actually paid. The budget envelopes for MaPrimeRénov’ have been reduced, and processing times can extend the project timeline.
Real estate sale: setting the price in a correcting market
On the seller’s side, the temptation to refer to prices from two or three years ago persists. Transactions today are often concluded at levels lower than the initial estimates of owners, especially in areas where supply has increased.
Two factors weigh on price setting. The first is the property’s EPC label: a property classified as F or G suffers a depreciation that buyers systematically factor into their offer, as they will need to finance the necessary upgrades. The second is the duration of the sale. An overvalued property by a few percent stays on the market longer, which eventually raises suspicion among potential buyers.
The margin for negotiation varies by geographic area. In tight markets, it remains limited for properties that are correctly valued and in good energy condition. In relaxed areas or for energy-intensive properties, it can be more pronounced. A seller who refuses any negotiation on a property classified as G risks seeing their property stagnate for several months.
Rental investment: balancing yield and regulatory constraints
Rental investment remains one of the French people’s favorite investments, but the regulatory framework has profoundly changed the analysis grid. The schedule for banning rentals of energy-intensive properties (G from 2025, F in 2028, E in 2034) requires long-term thinking.
A property classified as F bought today at a discounted price may seem attractive on paper. However, the renovation cost to reach at least class E must be compatible with the expected rent. Without renovations, this property will become un-rentable in less than two years.
The revised EPC for 2026 may also work in favor of some investors. A property heated by electricity whose label improves due to the new calculation method regains its rental potential without physical intervention. Checking if a property is affected by this reclassification before undertaking renovations avoids unnecessary expenses.
The real estate project that comes to fruition in 2026 is not the one launched on a whim. It is the one that integrates the EPC as a central variable of the budget, anticipates the tightening of renovation aids, and accepts to confront the desired price with the real market conditions. Energy regulation has become the primary criterion of feasibility, even before location or size.
