The French real estate market is going through a phase where several forces are acting in opposite directions: credit rates are rising, prices are falling in certain areas, and regulatory changes are altering the rental value of thousands of homes. Understanding these mechanisms allows for making decisions on buying, selling, or rental investment based on solid foundations rather than impressions.
Electricity coefficient of the DPE: a silent reclassification since January 2026
The conversion coefficient of electricity to primary energy has changed from 2.3 to 1.9 as of January 1, 2026 (decree of August 13, 2025). A home heated by electricity can thus gain a class on its DPE label without any work being done.
The consequences on the rental market are immediate. Properties classified as G, subject to a rental ban, shift to F and become rentable again. For a landlord, this shift of one letter makes the difference between keeping a property for rent and having to withdraw it from the market.
The actual consumption of the home, however, does not change. The reclassification is purely methodological. An informed buyer will benefit from comparing the label with the actual energy bill before relying on the new classification. To keep track of these regulatory developments over the months, discovering the news on Mon Hebdo Immo helps stay informed about changes that directly affect property values.
Rental ban on thermal sieves: where does the regulation stand
The ban on renting homes classified as DPE G is still in effect. The Senate examined a proposal for relaxation, which was then sent to the National Assembly in July 2026, without adoption at that date.
Legally, a landlord who rents out a G-rated property is exposed to a lease refusal that can be enforced by the tenant. Betting on a hypothetical postponement of this ban amounts to taking a concrete and documented risk.
Co-ownership and energy renovation: the blockage persists
In co-ownership, the situation becomes even more complicated. An OpinionWay survey cited by Les Échos in October 2026 highlights a marked gap between the desire to renovate and the actual progress of the work. Votes in general assembly remain a recurring obstacle.
- The cost of the work must be shared among co-owners with very different financial capacities, which often blocks the vote at the required majority
- The MaPrimeRénov’ files in co-ownership require coordination between the property manager, the representative, and each co-owner, an administrative complexity that discourages many residences
Buying a unit in an energy-intensive co-ownership without checking the progress of the renovation plan is betting on a timeline that no one controls.
Mortgage rates: understanding the mechanics of the rise
Since the start of the 2026 school year, after a phase of relaxation, mortgage rates are on the rise again. The increase in key rates is reflected in bank scales and gradually reduces households’ borrowing capacity at constant monthly payments.
First-time homebuyers in 2026: financing levers
Several avenues deserve to be explored by first-time buyers facing this increase:
- The zero-interest loan, whose eligibility conditions and ceilings vary each year depending on the geographical area
- Negotiating the borrower insurance, a source of significant savings on the total cost of the loan
- Extending the loan term, which partially offsets the rise in the rate but increases the total cost of interest
Having multiple institutions simulate your file remains the most profitable reflex. The gap between the best and worst offer can reach several tens of thousands of euros over the total duration of the loan.
Real estate prices in France: increasing geographical disparities
Every quarter, the Notaires de France publish an analysis of the old real estate market. The data from the first quarter of 2026 confirm a trend already perceptible at the end of 2025: prices are generally falling, but very unevenly across territories.
Paris operates under a different dynamic. At the beginning of October 2026, a Parisian apartment was selling for an average of 9,630 euros per square meter according to MeilleursAgents, a level that has been almost stable for over a year. The agency IMOP estimates that the most likely scenario for 2027 is moderate erosion rather than collapse.
Outside the capital, the picture becomes fragmented. Medium-sized cities that benefited from the post-2020 urban exodus are seeing their attractiveness wane. Some buyers who have partially returned to the metropolitan areas are reselling properties purchased at the peak of the cycle.
PLF 2027 and real estate taxation
Upcoming budgetary decisions could reduce certain tax advantages related to rental investment. Parliamentary discussions on the next finance bill deserve particular attention for any investor engaged in an acquisition project.
Keeping track of the legislative calendar is part of real estate management just as much as monitoring rates or prices per square meter. A tax provision can disappear between the signing of a compromise and the delivery of the property.
The French real estate market in 2026 can be understood through three overlapping grids: energy regulation that redistributes the value of the existing stock, the cost of credit that redefines buyers’ solvency, and an increasingly fragmented price geography. It is the intersection of these three dynamics, each evolving at its own pace, that determines the relevance of a buying or selling decision at any given moment.
