A landlord who discovers that their property classified as G can no longer be rented under a new lease since January 2025: this is the type of situation that redefines priorities in the real estate market. The real estate trends for 2024-2025 are not just about price curves or interest rates. They directly impact the daily management of an asset, the feasibility of a purchase, and the profitability of a rental investment.
EPC and rental ban: the timeline that changes the game for landlords
There is much talk about falling prices or rising rates. But for a landlord, the most concrete constraint in 2024-2025 remains the energy performance timeline. Properties classified as G no longer meet the decency criteria for leases signed, renewed, or extended since January 1, 2025, in mainland France. Class F properties will follow in 2028, and class E in 2034.
What matters on the ground: an ongoing lease is not automatically terminated at the effective date. The constraint applies at the time of signing, renewal, or extension. A landlord renting a G property with a tacitly renewed lease in 2025 is affected.
For those following Gone Magazine’s real estate articles, this topic comes up regularly because it involves heavy financial decisions: renovate, sell as is, or wait for a possible reclassification of the EPC.
The method for calculating the EPC has also evolved for properties heated by electricity. A landlord can check if their property’s classification changes thanks to a certificate from ADEME, without having to redo the complete diagnosis. This verification can transform a G property into an F, which postpones the ban deadline by several years.
Mortgage rates: what the gradual decline changes for a purchase
After a period when 20-year rates climbed above 4%, the trend has reversed. Rates have begun to decline, driven in part by successive cuts to the ECB’s key rate.
On the ground, this decline does not manifest the same way for all profiles. A first-time buyer with limited savings sees their borrowing capacity increase significantly, even with a modest rate decrease. A rental investor, on the other hand, primarily recalculates their monthly cash flow and net profitability after expenses.
Renegotiation and refinancing of mortgage loans
When rates fall, the question of refinancing arises. But refinancing is only profitable if the rate difference exceeds a certain threshold and the remaining term is sufficient. Many homeowners who borrowed at the peak rates in 2023 are starting to approach their banks.
The classic trap: only looking at the nominal rate without factoring in guarantee fees, early repayment penalties, and the cost of new borrower insurance. The real gain is measured in the total cost of credit, not in percentage points.
Co-ownership and multi-year work plan: an obligation that weighs on charges
Co-ownerships have their own regulatory deadlines, often unknown to buyers. The multi-year work plan (PPPT) has gradually become mandatory depending on the size of the co-ownership. In 2025, the obligation extends to co-ownerships with 50 lots or fewer.
In practice, before buying an apartment in co-ownership, it is now checked:
- The existence of the PPPT and its content (nature of planned works, budget estimate, schedule)
- The amount of the work fund already established, funded by mandatory annual contributions
- The collective EPC of the building, which conditions future energy renovation obligations
- The minutes of general assembly meetings to identify any voted or upcoming calls for funds
A PPPT estimated at several tens of thousands of euros radically changes the real value of a lot. During negotiations, it is a concrete lever to adjust the purchase price.
Thermal sieves for sale: opportunity or trap for investors
Properties classified as F and G are arriving in large numbers on the sales market. Some landlords prefer to sell rather than finance costly renovations. For a buyer-investor, this is a window of acquisition at a reduced price, provided they manage the renovation budget.
Assessing the real cost of energy renovation
The practical reflex: before signing a compromise, an energy audit (not just an EPC) is conducted to identify priority areas. Attic insulation, replacement of the heating system, ventilation: each area has a different impact on the final classification.
The main risk remains the gap between the initial quote and the actual cost of the works, especially in co-ownership where decisions depend on votes in the general assembly. An investor buying a lot in a building without a PPPT or work fund exposes themselves to unforeseen additional costs.
- Check if renovation aids (MaPrimeRénov’, CEE) are available for the property’s and owner’s profile
- Compare the purchase price of the F/G property with an equivalent already renovated property in the same area
- Incorporate the duration of the works into the profitability calculation: a property under renovation generates no rent
The real estate market in 2024-2025 rewards those who read the fine print: EPC timeline, PPPT, real cost of credit, renovation budget. Prices and rates capture attention, but it is the regulatory constraints and predictable charges that determine the real profitability of a real estate project.
