The rent control now extends to fifteen new cities, altering the balance between landlords and tenants. The usury rate, raised in January, changes the game for borrowers, while the time taken to obtain credit continues to lengthen in certain regions.
The gradual phasing out of the Pinel scheme is stirring the new housing market, while energy renovation is becoming essential for owners of older properties. The first statistics of the year reveal an increase in transactions in medium-sized cities, contrasting with the slowdown observed in major metropolitan areas.
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What the new real estate laws and regulations change in 2024
The French real estate sector is being disrupted in 2024 by a series of texts that reshuffle the cards for both professionals and individuals. The PTZ (Zero Interest Loan) continues to support first-time buyers: it remains available this year, giving a boost to many modest buyers who, despite the credit crisis, can consider purchasing their first property. At the same time, the Pinel law is coming to an end, set to stop on December 31, 2024. It is gradually being replaced by the Pinel Plus law, which raises the bar on the energy performance of eligible housing.
The funding for MaPrimeRénov’, exceeding 5 billion euros, shows how energy renovation is establishing itself as a new pillar of the market. Owners of older properties, now subject to stricter energy performance diagnostics (DPE), see these aids as an opportunity to adapt their property rather than face restrictions. The purchase assistance programs, strengthened in 2024, are reshaping the landscape for buyers and investors.
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Here are the main points to remember among these measures:
- Expanded zero-interest loan: relaxed access for households with modest incomes and young professionals looking to become homeowners.
- MaPrimeRénov’: increased subsidies for major renovation works, whether in co-ownership or individual housing.
- Gradual end of the Pinel law: conditions are evolving, with new energy efficiency constraints for rental investors.
Young people still struggle to obtain credit, hindered by still high rates even though a slight easing is on the horizon. Betting on renovation becomes a strategic choice in this tense context. To keep up with the sector’s developments over the months, real estate news on Clarity News remains a useful resource to not miss any changes. Additionally, the housing tax is disappearing for primary residences, but taxation is evolving for vacant or secondary properties.
Market trends: what opportunities and major changes this year?
The French real estate market is going through a pivotal period in 2024. Following last year’s brutal correction, there is a widespread decline in prices: -4% on average across the country, with sharper drops in Bordeaux (-8.6%) or Lyon (-8.1%). Old apartments show a decrease of 1.8% year-on-year, while old houses drop by 2.3% according to notaries. Île-de-France is not spared; on the contrary: the region shows a decline of -3.6% year-on-year in the fourth quarter, and even -5.3% for apartments, -5.4% for houses.
But the dynamics are also stalling on the volume side: 792,000 sales of old properties have been recorded, representing a sharp decline of 9% compared to 2023 and a drop of 29% compared to 2022. The mortgage rates, which hovered around 4% for 20 years at the beginning of the year, are beginning to show a slight decline, which is starting to ease the pressure for some buyers.
To better grasp the new landscape, here are the major trends to watch:
- Stabilization of prices after a long period of decline
- Dynamic rental market, driven by a lack of offers for purchase
- Amplified correction in major cities, forcing investors to rethink their strategies
The old market is taking a pause. Industry professionals expect a slow recovery in 2025. Savvy investors are keeping an eye on rental tension and medium-term valuation, as demand is now focused on properties that meet the new environmental standards.
What concrete advice for successfully purchasing or investing in real estate in 2024?
The context has hardened. Buyers and investors, faced with the contraction of credit and the persistent volatility of prices, leave nothing to chance. To navigate this, one must carefully assess the true value of a property. Real estate prices have dropped by an average of 4%, but the terrain remains uneven: each city, each neighborhood, shows its own variations. Negotiation is becoming a key step again: it is essential to incorporate local specifics, neighborhood developments, and the energy performance of the housing.
In 2024, support mechanisms such as the PTZ for first-time buyers or the extension of the Pinel law until the end of the year can make a difference right from the preparatory phase of the project. Pay close attention to the conditions for accessing financing: mortgage rates are stabilizing around 4% for twenty years, but each negotiation can influence the success of the application. Young people and first-time buyers, particularly affected by the difficulty of accessing credit, should aim for areas eligible for the PTZ or consider properties to renovate to benefit from MaPrimeRénov’.
Always demand an up-to-date DPE, especially for a purchase in co-ownership. Environmental standards are tightening, and the future value of your property will heavily depend on its energy performance. Don’t forget to consider all additional costs and local taxation (housing tax, property tax) in your financial planning.
To optimize your project, keep these key points in mind:
- Analyze the ease of resale by studying the attractiveness and dynamics of the sector.
- Prioritize transparency: request all diagnostics, inquire about the financial health of the co-ownership.
- Consider mobilizing existing aids, especially to reduce the cost of energy renovation works.
Real estate in 2024 resembles a balancing act: every decision, every detail counts, and the future smiles on those who can read between the lines of the market. The terrain has never been so fluid, but it is full of new paths for those who dare to engage with clarity.