Real estate investment in 2024 is characterized by tighter financing conditions and a regulatory timeline that alters the value of properties based on their energy performance. Understanding these two parameters before choosing a property or a structure helps avoid costly mistakes in a market where negotiation margins exist, but the entry cost has significantly increased.
Personal contribution and mortgage: the starting filter in 2024
Since 2023, banks frequently require a personal contribution of 20 to 30% of the property’s price to grant a mortgage to rental investors. A few years earlier, a contribution of 10% was sufficient in most cases.
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This tightening has a direct consequence on strategy: it encourages targeting smaller lots (studios, T2) whose entry ticket remains compatible with available savings. It also directs attention to markets where prices per square meter remain moderate, meaning medium-sized cities rather than large metropolises.
For profiles that do not have this contribution, collective vehicles such as SCPI or real estate crowdfunding allow access to the market with a lower unit capital. The yield and level of control differ, but exposure to the real estate market remains real.
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The choice between direct acquisition and collective investment thus depends as much on the ability to contribute as on the appetite for rental management, a point often detailed in specialized resources on real estate for investors on Investisseurs Immobiliers.
Energy timeline and purchasing strategy: DPE G, F, E
The Climate and Resilience Law imposes a precise timeline for banning rentals for the least well-rated properties according to the energy performance diagnosis. Properties rated G are affected first, followed by F and then E in the following years.
This constraint creates two opposing strategies.
Buy a thermal sieve with a renovation budget
A property rated G or F negotiates at a price significantly lower than the market. An investor with a renovation budget can renovate, improve the DPE rating, and then re-rent the property at a reassessed rent. The mechanism of property deficit allows the cost of renovations to be deducted from rental income, reducing tax pressure for several years.
The risk: underestimating the amount of renovations or the duration of the work. A property vacant for six months represents a loss of rental income that can absorb part of the discount obtained at purchase.
Directly target properties rated D or better
The alternative is to buy a property that is already compliant, with no renovations needed. The purchase price is higher, but the rental can begin immediately. This approach suits investors who prioritize rental profitability from the first month without mobilizing additional cash for renovations.
Rental yield in medium-sized cities: beyond the metropolises
Several recent analyses confirm that medium-sized cities offer higher gross rental yields than large metropolises. Markets like La Rochelle, Poitiers, Chambéry, Valence, or Chalon-sur-Saône present a more favorable purchase price/rent ratio than Paris, Lyon, or Bordeaux.
This situation is explained by a wide price gap per square meter, while rents in these intermediate cities have not decreased proportionally. Rental demand is supported by the presence of universities, hospital centers, or industrial employment pools.
- The gross yield in these cities often exceeds that of large metropolises by several points, compensating for a slightly higher risk of vacancy.
- The reduced entry ticket allows compliance with banking contribution requirements without mobilizing all available savings.
- Rental pressure, although less publicized than that of Paris, remains real in university cities or those with strong tertiary activity.
Investing in a medium-sized city does not mean investing anywhere. The proximity to an employment hub or a university campus remains the primary criterion for securing the occupancy rate. A property located fifteen minutes by car from a dynamic city center but without public transport will have a very different risk profile than an apartment in the city center.
Taxation and structure: SCI, LMNP or property deficit
The choice of legal and tax structure conditions the net profitability of a rental investment. Three options frequently arise.
The non-professional furnished rental (LMNP) allows for the accounting depreciation of the property and furniture, which reduces taxable income for several years. This regime is particularly suitable for small units in student cities, where the demand for furnished rentals is structural.
The civil real estate company (SCI) taxed under corporate tax offers a different taxation: profits are taxed at the corporate tax rate, often lower than the marginal tax rate of an individual. The SCI also facilitates wealth transfer through the gradual sale of shares. The downside: heavier accounting and capital gains tax calculated on the net accounting value, which can be penalizing upon resale after many years of depreciation.
The property deficit, mentioned earlier, applies in unfurnished rentals. It allows for the deduction of renovation costs from rental income, and then from global income within certain limits. This mechanism is particularly suitable for older properties requiring energy renovation.
The right structure depends on the intended holding period, the level of existing rental income, and the wealth objective. An investor planning to sell within ten years does not have the same tax interest as an investor building a transferable wealth.
The real estate market of 2024 rewards precision: precision of renovation budget, geographical choice, tax structure. Opportunities exist for properties to renovate as well as for compliant lots in medium-sized cities, provided that each financial parameter is verified before signing the preliminary contract.