Real estate: major changes coming in 2025

The year 2025 marks a significant turning point for the real estate sector in France, with the implementation of numerous regulations stemming from the Climate and Resilience Law. This modernization of the real estate market aims to address environmental and societal challenges. However, it also presents considerable challenges for property owners, tenants, and professionals alike.

Farewell to energy inefficient homes

The most radical change in 2025 concerns the end of energy-inefficient homes. Since January 1st, properties rated G on the Energy Performance Certificate (DPE) can no longer be rented out, as they are considered "uninhabitable." This new status removes over 500,000 properties from the rental market, creating a concerning situation in some areas.

Property owners are now forced to invest in expensive renovation work to meet the new energy standards. Failure to comply means they will be unable to rent out their properties. This measure will extend to other property categories in the future:

- 2028: Ban on properties rated F,

- 2034: Ban on properties rated E.

In the overseas territories (DOM-TOM), these deadlines are postponed to account for local climatic and economic specifics.

Strengthening of energy performance certificates (DPE) and energy audits

To increase transparency and clarity regarding energy performance, other notable changes are taking place this year:

- DPEs conducted before July 2021 are no longer valid.

- All residential leases must now clearly mention the property's DPE.

- An energy audit is mandatory for the sale of any property rated E or below.

In co-ownership properties, a collective DPE is now required for buildings with between 50 and 200 units, an extension of the requirement for larger buildings implemented in 2024.

Impact on tourism and co-ownership properties

The short-term rental market is also facing a tightening of legislative regulations. A new national registration requirement for these rentals applies to all property owners, allowing municipalities to better monitor the activity. Additionally, local authorities may reduce the allowed duration for seasonal rentals to 90 days per year.

For smaller co-ownerships (fewer than 50 units), the obligation to implement a Multi-Year Work Plan (PPT), effective this year, requires syndicates to schedule necessary works over the next 10 years. This plan aims to prevent the gradual deterioration of buildings, ensuring their sustainability and compliance with environmental standards.

Côte d'Azur Sotheby’s International Realty: A Trusted Partner in this Evolving Landscape

In a rapidly changing market, the experts at Côte d'Azur Sotheby’s International Realty position themselves as key players in guiding property owners, investors, and buyers.With their extensive experience in luxury real estate and in-depth knowledge of the new regulations, they support their clients at every step of the process.

With a personalized approach and specialized expertise in energy and legal regulations , Côte d'Azur Sotheby’s International Realty helps clients to:

- Identify investment opportunities that comply with new standards,

- Enhance their property value through tailored renovation advice,

- Successfully complete transactions with peace of mind.

As real estate enters an era of heightened demands and innovation, collaborating with experts like those at Sotheby’s International Realty transforms these challenges into opportunities while ensuring the sustainable value of real estate assets.