France real estate: New energy and co-ownership regulations

New energy regulations in France are significantly impacting the real estate market. As of January 1, 2025, housing classified as 'G' on the energy performance certificate (DPE) is prohibited from the rental market for new leases. This restriction is scheduled to expand to 'F' rated properties in 2028 and 'E' rated properties in 2034.

A 2024 decree has also updated the DPE calculation method for properties smaller than 40 square meters by adjusting the weighting for heating and hot water. This change can result in a property's rating shifting (for example, from 'F' to 'E'), which may delay rental prohibitions for certain small units.

Additionally, co-ownership properties older than fifteen years are now required to establish a multi-year work plan. This mandatory document outlines a schedule and financial provisions for essential upgrades, such as insulation, boiler replacements, or roof repairs, posing new financial considerations for buyers.