2023-11-23 12:29:39
Other times, other manners. If the rising interest rates has permanently disrupted the real estate market, the same is true with the impact of the DPE (energy performance diagnosis). Especially when it comes to rental investment. To be able to continue to rent accommodation over the long term, it is often necessary to carry out a costly thermal renovation. This element has not escaped the rental investment platform Maslow.immo. And this, all the more so as it specializes in new and recent old properties, where many of its competitors work exclusively on old real estate.
“We have noticed since the start of the school year in September that although our customers’ desire to buy is still there, the budget has changed in view of the financing crisis and the slight price reductions, explains Pierre-Emmanuel Jus, deputy director of Maslow. They favor location, ease of renting and the absence of work. The latter scare them into the old one but most of the time they think that the new one will be too expensive.” Certainly, construction costs are not expected to decline in the near future and it is currently difficult to find new programs available. But on those which are still for sale, it is true that the promoters are currently ready to grant discounts. And even in “normal” market conditions, the renovation of the old property can weigh heavily on the total price.
Up to 30% price difference
By aggregating the sale price in the old property, notary fees, renovation costs and loss of surface area, the study determines that for 7 cities – La Rochelle, Bordeaux, Orléans, Bayonne, Nantes, Annecy and Toulouse – , the investor comes away with lower costs in new construction with savings ranging from 28.24% in Lille to 1.44% in Toulouse. Conversely, in Clermont-Ferrand, Perpignan, Reims, Nîmes and Caen, lovers of old will save more than 20% and even 30% in the Auvergne capital.
How were these results obtained? Maslow relied on the results of a study carried out by the online real estate agency Flatlooker covering 1000 renovations actually carried out to move from a DPE G to D. It takes into account insulation, ventilation and heating work. -water, heating and the small interior renovation which must accompany this work (no change of kitchen or bathroom) and results in an average renovation price of €1,029/m². A price that weighs heavily in cities where old real estate is the cheapest since it rises up to 40% in Perpignan (see infographic).
These cities which reach tense areas
Note that the study applies, to all cities, this average price of renovation even though it can vary significantly from one place to another and that it assumes that we buy a sieve classified G without integrating discount on the price of notaries. The choice to renovate to obtain a letter D is quite clear. “Today to ensure the security and readability of your rental investment, you must aim for this letter D which allows you to avoid the sword of Damocles of legislation beyond all current deadlines (G dwellings are prohibited from renting in 2025, F in 2028 and E in 2034),” underlines Pierre-Emmanuel Jus.
He also believes that the results of his study are supported by recent elements. “Three of the five cities in our Top 5 of the most advantageous municipalities for new construction have moved into a tense zone (La Rochelle, Orléans and Bayonne, Editor’s note). This shows that the legislator recognizes the difficulties in this market which can justify higher rents. Conversely, cities where old buildings are much cheaper than new ones, such as Clermont-Ferrand, Reims or Nîmes, are also those where rental pressure is the lowest.” To support his demonstration, he cites the case of Perpignan which has 42% more T4s than Orléans and where the difficulty of finding a tenant is therefore much greater.
#cities #thermal #renovation #buildings #cheaper