A landlord who signs a lease for an apartment rated F in the energy performance diagnosis (DPE) can no longer adjust the rent, even if the rent reference index increases. This constraint, in effect since August 2022 in mainland France, changes the game for anyone considering a rental investment in 2024 without having checked the energy classification of the targeted property.
Rent freeze on energy-inefficient homes: the trap that simulators do not show
We look at rates, compare prices per square meter, and launch a loan simulation. The classic reflex. But the actual rental yield also depends on a parameter that many online calculators ignore: a property rated F or G can no longer have its rent adjusted as long as its DPE score has not improved.
Specifically, for any lease signed, renewed, or extended since August 24, 2022, in mainland France, the annual adjustment indexed to the IRL is blocked. This freeze has been extended to Guadeloupe, French Guiana, Martinique, Réunion, and Mayotte for leases concluded or renewed from July 1, 2024.
For an investor buying an energy-inefficient home with the idea of renovating it later, the profitability calculation must take into account this period of frozen rent. If the renovations take two or three years, that’s a significant amount of time without any possible catch-up. Analyses published on the Trend Immo blog allow tracking this type of regulatory evolution over the months.
Rent control in 2024: what is at stake before the 2026 deadline
The rent control system, established by the Élan law and extended by the 3DS law, remains officially experimental until November 23, 2026. A bill adopted by the National Assembly on December 11, 2025, aims to make it permanent and open it to all willing municipalities in tight housing areas.
This same proposal plans to cap the rent supplement at 20%. The text is still pending in the Senate, creating direct uncertainty for investors positioned in tight rental markets.
What this changes for a rental purchase in a tight area
Two scenarios are emerging. If the law is passed and the system is made permanent, rents will remain controlled sustainably in the affected cities. The gross yield is predictable but capped. If the text does not pass before November 2026, we enter a legal gray area where municipalities could lose the legal basis for their rent control.
In both cases, investing in a tight area requires knowing the increased reference rent of the neighborhood before signing. A purchase based solely on the price per square meter, without checking the applicable rent cap, can turn an apparent good deal into a mediocre operation.
Transaction volumes and prices of older properties: reading the signals of the real estate market
The market for older properties has experienced a marked contraction in recent years, with a significant decline in the number of sales compared to the record levels observed in 2021. Notaires de France publishes quarterly analyses showing a downward trend in prices across several segments, particularly in Île-de-France.
It would be a mistake to read this decline as a uniform signal. Dynamics vary significantly by territory:
- Large metropolitan areas are seeing their prices correct after years of sustained increases, with more pronounced declines in older apartments than in houses.
- Well-connected medium-sized cities (TGV, dynamic employment areas) are holding up better, driven by a shift in demand from the most expensive areas.
- Rural or peri-urban markets experience very contrasting situations depending on local attractiveness; returns vary on this point, and it is difficult to generalize.
The drop in prices does not automatically mean a good deal if the property requires heavy energy renovations to move out of category F or G. The cost of renovations, combined with the rent freeze, can negate the advantage of the purchase price.
Mortgage rates: the renegotiation window
After a period of rapid increases that restricted the borrowing capacity of many households, mortgage rates have begun to ease. This development restores purchasing power to buyers, but it does not fully compensate for the previous rise.
For an investor, the useful reflex is to compare the total cost of credit (cumulative interest over time) rather than the nominal rate. A slightly higher rate over 15 years often costs less than a lower rate over 25 years.
New real estate in 2024: why volumes remain under pressure
The new property market is going through a difficult phase. Sales of new homes have dropped significantly, accompanied by a marked decrease in listings and building permits. This contraction in new supply has direct repercussions on the rental market: fewer homes built means increased pressure on available rental properties.
For an investor, this situation presents a paradox. On one hand, the scarcity of new supply supports rents in areas where demand remains strong. On the other hand, the exit prices of new programs remain high, which limits the gross yield at entry.
Choosing between older properties to renovate and turnkey new ones
Older properties requiring work offer a lower purchase price and tax incentives related to energy renovation. In return, one must manage the construction site, anticipate delays, and budget for unforeseen expenses. New properties simplify rental management (recent standards, low charges, no short-term work), but the entry price reduces immediate profitability.
The choice depends on the profile of each investor and their ability to manage renovations. An older property rated E or D, in a medium-sized city with stable rental demand, often remains the best compromise between purchase price, achievable rent, and medium-term appreciation.
The real estate market in 2024 rewards those who read regulatory constraints before pulling out the calculator. DPE ranking, rent control, real cost of credit over time: these three parameters weigh as heavily as the price per square meter in the success of a rental investment.