The Impact of Energy Performance Regulations on Parisian Rental Market: A Rise in Demand and Fall in Prices

2023-08-30 03:35:46
Facades of Parisian buildings, in April 2023. JOEL SAGET / AFP

It was a summer unlike any other. In her real estate agency Laforêt in the 11th arrondissement of Paris, Samantha Néro ” go home ” more than one apartment to rent per week, in the best of cases. “There are far fewer rental offers and turnover in housing than in past yearsshe testifies. But, on the other hand, I receive about ten requests a day from people looking for an apartment. » For each new ad placed online, she gets “a hundred calls and as many emails within two hours”. « There are filtersshe says, I never organize more than ten visits, so as not to give false hopes to more people. »

At the head of eight Laforêt agencies in eastern Paris, Laurent Da Costa confirms the shortage. “For the first time since I opened in 2007, we are losing more apartments under management than we are bringing inhe observes. When a tenant moves out, many landlords put their apartment up for sale. » Ses clients “had already had trouble digesting the rent controls”from now on, it is the prospect of the ax of the diagnosis of energy performance (DPE) which pushes them to sell.

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“The small areas for rent in the districts of Paris where my agencies are located are almost only F or G labels. Rental profitability in Paris was already low, but it will be nil for owners who have to make large energy renovation work to be able to continue rentingexplains the branch manager. Landlords also have trouble finding contractors when they want to make quotes, the materials are very expensive… In short, they prefer to sell. »

“Beginning of a fall in prices”

Since January 1, the worst thermal colanders have been banned for hire. This ban will concern all goods classified G in 2025, F in 2028 and E in 2034. Measures intended to reduce greenhouse gas emissions, far from being insignificant: in Ile-de-France, 2.3 million main residences had, in 2018, an energy performance diagnosis classified E, F or G. That is 45% of the Ile-de-France stock of main residences.

Rental investment has lost its appeal. “We have only been selling main residences in our agencies in recent monthsemphasizes Laurent Da Costa. But, since the beginning of August, we perceive a tremor, investors seem to return to the market, with the beginning of a fall in real estate prices. Perhaps the DPE effect also begins to be digested. »

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