Buying a property, investing in rental real estate, or renovating an old home: every real estate project in 2024 faces a context that has profoundly changed over the past two years. Interest rates are no longer at rock bottom, the supply of new housing has dwindled, and energy performance now weighs on resale value. Understanding these three realities before signing anything helps avoid costly mistakes.
Energy Inefficiency and Depreciation: Using the DPE as a Negotiation Tool
Have you noticed that some listings show surprisingly low prices compared to the neighborhood? Check the energy label. A property rated F or G incurs a depreciation at purchase because the future owner will have to finance energy renovation work to bring it up to standard.
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This regulatory pressure creates a concrete opportunity. Buying an energy-intensive property at a reduced price, then renovating it, can be cheaper than acquiring a property that is already energy efficient. The calculation only works on one condition: accurately estimate the cost of the work before making an offer.
Several public aids cover part of the renovation (MaPrimeRénov’, zero-interest eco-loan, local aids depending on the communities). The trap is to rely on them without checking the eligibility criteria, which change regularly.
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Before signing any compromise, have an energy audit conducted by a certified professional. This audit provides an estimate of the work item by item: insulation, heating, ventilation, joinery. Specialized portals like Monde Immobilier allow you to track these regulatory developments and evaluate properties based on their energy label.
Mortgage in 2024: What Has Changed in Bank Selection
Interest rates have significantly increased compared to the 2020-2021 period, when borrowing at around one percent was common. Access conditions for credit have loosened compared to the previous peak tension, but bank selection remains stricter than before 2022.
The interest rate is no longer the only determining factor. Banks analyze three elements with increased scrutiny:
- Personal contribution, which must at least cover notary fees and ideally part of the property price to reassure the lending institution.
- Job stability: a confirmed permanent contract or regular income over several years for freelancers. Short contracts or trial periods significantly complicate obtaining a loan.
- Remaining disposable income after loan repayments. The maximum debt-to-income ratio rule (set by the High Council for Financial Stability) is strictly applied, and bank exceptions have become rare.
Preparing your file in advance, with clean bank statements for the last three months and visible regular savings, makes a difference. A broker can help assemble the file, but they do not replace a long-term readable financial behavior.
New or Old to Renovate: Why the Winning Strategy Has Changed
For a long time, buying new was the simplest choice. Builder warranties, recent standards, no work to be expected. In 2024, the new market remains penalized by a structurally insufficient supply. Construction programs have slowed, material costs have risen, and delivery times have lengthened.
This imbalance pushes part of the demand towards older properties that need renovation. The reasoning is pragmatic: a well-located old property, purchased with a discount related to its energy condition, then brought up to standard, can reach a value comparable to that of new for a lower overall budget.
Why does this choice require more rigor? Because buying old requires mastering several aspects in parallel: acquisition price, renovation costs, renovation timelines, and financing as a whole. Integrating the renovation work into the mortgage (through a renovation loan linked to the main loan) simplifies management and allows for smoothing out monthly payments.
Real Estate Prices and Negotiation: The Room for Maneuver in 2024
The price correction observed since 2023 varies greatly by geographic area. Large metropolitan areas like Lyon or Nantes have recorded declines, while some medium-sized cities are holding up better due to an attractive quality-price ratio and the development of remote work.
This market heterogeneity creates negotiation margins that did not exist three years ago. A property listed for several weeks, a motivated seller, or a home needing work are all signals to make an offer below the asking price.
Three concrete benchmarks for calibrating an offer:
- Compare the price per square meter with recent transactions in the same neighborhood (notarial databases available for free allow this verification).
- Identify the property’s objective flaws (poor DPE, voted co-ownership work, nuisances) and incorporate them into your proposal.
- Set a maximum price before the visit and stick to it, including additional costs (notary, agency, possible work).
Negotiating does not mean offering an unrealistic price. A well-argued offer, supported by comparable data, has a much better chance of succeeding than an arbitrary discount that would offend the seller.
The real estate market of 2024 rewards preparation. A solid banking file, a thorough understanding of the DPE and its financial implications, a clear strategy between new and old: these three pillars determine the success of a project far more than the timing of the purchase. Buyers who take the time to structure their approach before visiting the first property are the ones who sign under the best conditions.