Real Estate 2024: A Glimpse of The Future

In light of recent changes and developments in the real estate industry, experts predict that 2024 will see significant shifts in property trends. This article explores the top 10 key transformations expected in the world of real estate for 2024.

1. Introduction of MaPrimeAdapt Program

Launched on January 1st, MaPrimeAdapt aims to provide financial support for elderly or disabled individuals who need home modifications to continue living independently. Eligible recipients can receive between 50% to 70% of expenses with a maximum threshold of €22,000.

2. The Reform of MaPrimeRénov

With its focus on performance and efficiency, the reformed MaPrimeRénov program offers increased assistance to households with limited resources. The new program features two pathways:

  • Performance – for major energy renovations; and
  • Efficiency – including boiler replacements and smaller insulation projects combined with decarbonized heating systems.

Starting July 1st, owners of energy inefficient properties must follow the performance pathway. Eligible financing amounts and income ceilings have been raised, along with an increase in eligible municipalities.

3. Changes in Property Classification and Financing

From 2024 onwards, new properties located in “détendues” areas (where housing supply exceeds demand) will be excluded from eligibility for financing. Additionally, single-family homes will no longer qualify for funding under this classification. Co-owners will now only need a majority vote, rather than unanimous consent, to proceed with property subscriptions.

4. Tightening of Taxation on Tourist Furnished Rentals

The tax advantage known as “Airbnb” has been greatly reduced, with access to the “micro” regime now limited to landlords earning less than €15,000 in annual revenue. This is a significant decrease from the previous limit of €188,700. The flat-rate deduction on rents will be reduced from 71% to 30 %. Future revisions to this policy may occur during legislative reviews and within upcoming tax guidelines.

5. Exceptional Reduction for Sales Profit from Land in High-Demand Areas

Sellers of land in high-demand areas may benefit from an extraordinary 60% reduction in capital gains taxes, subject to specific conditions.

6. Extension of the Denormandie Scheme

Based on the Pinel tax reduction, the Denormandie scheme targets renovated housing opportunities in mid-sized cities. Homebuyers can take advantage of these tax breaks through 2024.

7. Implementation of Collective Energy Performance Certificates (DPE)

As of January 1st, single-owner buildings and condominiums containing over 200 units must acquire an Energy Performance Certificate.

  • Condominiums with 50 to 200 units will be required to comply in 2025;
  • Condominiums with fewer than 50 units will have until 2026 to meet this requirement.

8. Final Year of the Pinel Tax Reduction Scheme

2024 marks the last year that homebuyers can utilize the Pinel tax reduction scheme, with rates set at 9%, 12%, or 14% for rental agreements lasting 6, 9, or 12 years. However, the “Pinel+” and “Super Pinel” programs, featuring higher rates and additional requirements for comfort, habitability, and energy efficiency, will still be available.

9. The Countdown for Energy-Inefficient Properties

Starting January 2025, properties classified as G on the DPE scale can no longer be rented out. This is a considerable change that property owners should be aware of in order to make updates and improvements to adhere to these new regulations.

10. Seizing Opportunities in Real Estate for 2024

As the landscape of real estate continues to shift, it’s important for industry professionals, homeowners, and potential investors to stay informed about these key changes and deadlines. By understanding the trends outlined above, stakeholders can better prepare themselves to navigate the world of real estate in 2024.

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