When it comes to real estate regulation, being attentive is anything but a luxury. This year is no exception to the rule... On the agenda: reforms but also renewal, to break free from a rather gloomy context. However, the plans outlined in the 2025 Finance Bill were disrupted at the end of 2024, by the vote of no confidence on December 4, 2024 which was set to overthrow the government of Michel Barnier.&nbsp;The uncertainties that resulted from this were partially resolved at the beginning of 2025. However, further details are expected regarding the real estate market: from rental investment to primary residence acquisition, from energy renovation to housing assistance, from changes in taxation to the forms to fill out for any renovation project.2025, a greener year? It seems so, especially in the field of ecological transition. In building decarbonization, there are few changes in 2025: the key points to note.🪫Énergy: anticipated changes·&nbsp; &nbsp; &nbsp; &nbsp;The absence of a Finance Act, the halt of Russian gas transit through Ukraine, and the breakdown of a major gas liquefaction plant have generated new factors of uncertainty in energy price evolution. &nbsp; &nbsp;·&nbsp; &nbsp; &nbsp; &nbsp;Energy performance of buildings: new adjustments to the RE 2020: A decree amending the energy and environmental performance requirements under the new building environmental regulation (tertiary housing) known as RE 2020 was published on December 31, for implementation on January 1, 2025. This follows feedback from the construction sector after two years of applying the regulation.&nbsp;&nbsp;·&nbsp; &nbsp; &nbsp; &nbsp;CEE: launch of the Pacte Entreprises program led by Ademe &nbsp;A decree, published on December 31, 2024 in the Official Journal, establishes the Pacte Entreprises program, eligible for energy efficiency certificates (CEE). Led by the Agency for Ecological Transition (Ademe), it targets private companies with tertiary activity buildings, mainly small and medium-sized enterprises, whether subject to the 'eco tertiary energy' scheme or not. &nbsp; &nbsp;🌡️ Climate objectives&nbsp;&nbsp;Adopted in 2021, the Climate and Resilience Law aims to combat climate change. To this end, it advocates and imposes objectives of Net Zero artificialization and energy renovation. Housing, food, transportation, consumption: every socio-economic aspect is subject to targeted measures, including within companies.Main objective: reduce France's greenhouse gas emissions by 40% by 2030 compared to 1990 levels.In early February 2024, the European Commission proposed an intermediate target: -90% by 2040. However, this has not yet been definitively adopted.The European climate regulation also establishes the creation of an advisory scientific council. Comprising 15 experts, it identifies actions to be taken to achieve the EU's climate objectives. And assesses the compliance of European legislative initiatives with the ambitions set out in the Green Deal and the Paris Agreement.According to the European People's Party, the European economy will depend on the abolition of renewable energy targets and the suspension of rules related to supply chain reporting.💶 Rental investment: G-rated DPE housing units prohibited for rentThe measure was announced as part of the 2022 Climate and Resilience Law.&nbsp;Its objective? Accelerate the energy transition by offering a greener, less energy-consuming rental stock.Since January 1, 2025, the die is cast: housing units classified as "energy sieves" due to their very poor energy performance are finally prohibited for rent.&nbsp;Concretely, a landlord can no longer offer a G-rated DPE housing unit for rent in mainland France. In the overseas territories, this measure will only take effect on January 1, 2028.&nbsp;Note: a G-rated unit under lease remains valid until expiry. However, without energy-efficient work, a new lease will no longer be possible.&nbsp;🗓️ The schedule:<ul><li>DPEs conducted before July 1, 2021 become obsolete due to the new rules.</li><li>As of January 1, 2025, co-ownerships with more than 50 units must compulsorily carry out a collective DPE (energy performance diagnosis).</li><li>In 2025: prohibition of renting G-rated DPE housing units.</li><li>In 2028: prohibition of renting F-rated DPE housing units.</li><li>Starting in 2034: prohibition of renting E-rated DPE housing units.</li></ul>&nbsp;&nbsp;&nbsp;&nbsp;💡 Mandatory energy audit for E-rated properties as of 2025From January 1, 2025, owners of properties rated E on the Energy Performance Certificate (DPE) must conduct an energy audit before selling. This measure, introduced by the Climate and Resilience Law, aims to encourage energy renovations in homes in France. Discover the details of this obligation and its impact on the real estate market.&nbsp;Ø&nbsp; What is an energy audit?The energy audit is a thorough analysis of a property's energy performance. Unlike the DPE, which is limited to an overall diagnosis, the audit provides a concrete work plan to improve the energy rating.&nbsp;&nbsp;Ø&nbsp; Which properties are subject to the energy audit?As of January 1, 2025, the energy audit applies to all E-rated properties put up for sale, in addition to F and G-rated properties already subject to this requirement.§&nbsp; Individual houses§&nbsp; Monoproperty buildings. Condominiums are exempt from this requirement, but remain subject to other energy renovation rules.<figure data-trix-attachment="{&quot;contentType&quot;:&quot;image&quot;,&quot;height&quot;:2,&quot;url&quot;:null,&quot;width&quot;:606}" data-trix-content-type="image" class="attachment attachment--preview"><img src="null" width="606" height="2"><figcaption class="attachment__caption"></figcaption></figure>Ø&nbsp; Why is this measure important?The aim is to reduce these properties known as thermal sieves, as they are energy-intensive and harmful to the environment. By promoting energy renovation, this measure ensures:§&nbsp; Reduced energy bills for occupants.§&nbsp; Improved thermal comfort.§&nbsp; Contribution to reducing greenhouse gas emissions.&nbsp;Ø&nbsp; What does the energy audit contain?The energy audit consists of 3 steps:1.&nbsp; &nbsp; &nbsp;Current diagnosis: Energy performance of the property.2.&nbsp; &nbsp; &nbsp;Work proposals:§&nbsp; Costed scenarios in several stages.§&nbsp; Solutions to achieve a D class or less energy-intensive rating.3.&nbsp; &nbsp; &nbsp;Available financial aid:§&nbsp; MaPrimeRénov'§&nbsp; Energy efficiency certificates (CEE)Finally, to inform you online about your renovation aid opportunities, the simulator <a href="mesaidesreno.beta.gouv.fr">mesaidesreno.beta.gouv.fr</a> helps you better understand what you are eligible for. &nbsp;&nbsp;&nbsp;&nbsp;

What has changed as of January 1, 2025

According to the latest report from the IPCC (Intergovernmental Panel on Climate Change), a UN body, "this year should be the one where emissions peak if the world wants to have a chance of keeping the temperature rise within the range of 1.5 to 2 degrees Celsius, as recommended by the Paris Agreement."Regarding greenhouse gas emissions, the peak would be reached this year, theoretically, if the said agreement is respected.&nbsp;During COP 29 in November 2024, the focus was on financing climate action.&nbsp;This major event brought together nearly 200 countries in Baku, Azerbaijan.It was an opportunity for the European Commission to establish a new roadmap regarding the partnership for methane reduction to accelerate the reduction of emissions linked to fossil fuel production and consumption. Everything relies on collaboration between partner countries, the International Energy Agency, and several non-governmental organizations.&nbsp;This partnership represents a model of cooperation between fossil fuel-importing and -exporting countries. This will help companies improve their monitoring, reporting, and verification systems to reduce methane emissions.According to Wopke Hoekstra, Commissioner for Climate Action, "Reducing methane emissions in the energy sector is an easily achievable climate action goal. It's a matter of economic common sense. It contributes to strengthening our energy security while reducing emissions. The roadmap we are launching today shows the way forward for cooperation between importing and exporting countries. For the EU, it is clear: we can effectively reduce methane emissions only if we work together on global supply chains with all relevant parties."As part of the <a href="https://www.globalmethanepledge.org/">global methane commitment</a> launched by the EU and the United States, over 150 countries aim for a collective target of reducing global anthropogenic methane emissions by at least 30% by 2030, compared to 2020 levels.&nbsp;This new roadmap outlines a system of monitoring, reporting, and verification based on the principles of the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), as well as a project to reduce emissions from assets.

From the Kyoto Protocol to COP 29: Progress and Developments

The beautiful Pinel Law is a real estate tax exemption product created in 2014. It allows for a reduction in income tax of up to 21% of the value of a newly acquired rental property. You can earn rental income and also benefit from a tax reduction spread over up to 12 years, potentially saving you up to 63,000 euros in taxes. The scheme will end on December 31, 2024&nbsp;1- What is it?&nbsp;You benefit from a tax reduction if you are fiscally domiciled in France and have made eligible real estate investments under the Pinel law.&nbsp;Created to support investment in rental real estate, this scheme allows the buyer to reduce their income tax amount if they acquire a new or off-plan (vente en l’état futur d’achèvement - VEFA) property between January 1, 2014, and December 31, 2024.&nbsp;The tax reduction applies if the property is rented out for a minimum period of 6 years, and by respecting the investment ceilings per fiscal household, i.e., up to two investments per year.&nbsp;It aims to support rental supply in areas where demand exceeds supply and to offer properties with capped rents to households facing difficulties in accessing the housing market but not eligible for social housing.&nbsp;2- What are the benefits of the Pinel law?&nbsp;Reduce income tax&nbsp;The acquired property must be rented out for a duration of 6, 9, or 12 years. Based on this duration, the income tax reduction rate varies.&nbsp;Rent to family members&nbsp;With this scheme, you also have the option to rent out your property to your ascendants or descendants. The tenant can be your child or parent as long as they are not part of your fiscal household. Their reference fiscal income must not exceed the regulatory ceilings.&nbsp;Become a property owner without a down payment and build a real estate portfolio.&nbsp;3- How to benefit from it?&nbsp;All taxpayers can invest in the Pinel Law. You just need to meet 2 conditions:&nbsp;• Have your tax residence in France&nbsp;• Investment ceiling per fiscal household, up to a maximum of 2 investments per year (300,000€ at a price of 5,500€ per square meter).&nbsp;Properties eligible for the Pinel scheme are subject to rent regulation, meaning that a calculation is carried out to determine their price. Rent amounts are determined based on 3 criteria:&nbsp;• Investing in a property located in an eligible Pinel zone&nbsp;• Respecting the predefined rent ceilings in the zone where the property is located&nbsp;• Habitable surface area of the property.&nbsp;4- What are the conditions?&nbsp;The tax reduction applies to operations carried out between September 2014 and December 31, 2024, on properties meeting the following criteria:&nbsp;- New, under construction, having undergone renovation or rehabilitation works, off-plan (VEFA).&nbsp;- The property must be rented out unfurnished for primary residence use for a minimum period of 6, 9, or 12 years.&nbsp;- The property must be rented out within twelve months following the completion date of the property.&nbsp;- Compliance with rent ceilings per square meter varying by zones,&nbsp;- Rent to tenants whose annual resources are below a ceiling set by decree.&nbsp;- The property must comply with energy and thermal standards.&nbsp;- Located in an area where demand for rentals exceeds supply.&nbsp;There are three so-called "tight" zones. Zone A bis: Paris and its immediate suburbs (76 municipalities in the Île-de-France region) Zone A: Cities spread across regions (including Lyon, Marseille, Montpellier, Lille, Bordeaux…) and 650 municipalities in the Paris metropolitan area. Zone B1: all metropolises with over 250,000 inhabitants (Nantes, Grenoble, Reims…) as well as the outer suburbs of Paris.&nbsp;It is worth noting that since January 1, 2021, the Pinel law only applies to properties located in a collective building. It no longer applies to individual and detached housing.&nbsp;5- Changes in 2024?&nbsp;The Pinel scheme was extended in 2020 for the period from 2021 to 2024. This extension notably includes a reduction in the tax reduction rate. In 2024, the tax reduction provided by the Pinel law is 9% for a 6-year commitment, 12% for 9 years, and 14% for 12 years.&nbsp;In parallel with the current Pinel scheme, since January 2023, the Government has opted for the introduction of an enhanced scheme, the Pinel Plus, which will accompany the Pinel law until its end and allow its beneficiaries to continue enjoying the full tax advantage, which can reach 12%, 18%, and 21% by complying with the new energy and thermal standards for properties from January 2025.&nbsp;To benefit from it, you must acquire a new property with very good energy performance, complying with the RE2020 regulations on environmental standards related to building construction as of January 2025.&nbsp;Or choose to acquire a property located in a neighborhood designated as a priority area by urban policy, i.e., urban territories considered priorities due to their socio-economic situation (high unemployment rates…)&nbsp;So, classic Pinel or Pinel Plus?&nbsp;It depends on the property purchase date. Before December 2022, it is the Pinel scheme.&nbsp;Rent and tenant resource ceilings remain the same in both options, and it is still the rental duration - 6, 9, or 12 years - that will define the amount of the tax reduction.&nbsp;The difference lies in the introduction of more responsible housing on the market. Thus, under the Pinel scheme, the property owner can benefit from a tax reduction of up to 4,500€ per year, which differs from Pinel Plus, where the tax reduction can reach 6,000€ per year.&nbsp;6- How does it work?&nbsp;The Pinel Law limits investment to 2 properties per household per year.&nbsp;The tax reduction calculation is based on a maximum acquisition amount of 300,000€ per year and within the limit of a price of 5,500€ per square meter. The tax deduction will only apply to these amounts, even if the property cost exceeds them.&nbsp;The income tax reduction will be canceled if these conditions are not met.&nbsp;There is still time to take advantage of the Pinel scheme until December 31, 2024, to acquire an eco-responsible property. Afterwards, there are already alternatives such as the LMNP status (Non-Professional Furnished Landlord), combining advantageous taxation and profitability.&nbsp;

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