An investor signing a preliminary agreement today is not facing the same market as in 2022. Transactions have dropped by nearly 15% in 2024 compared to 2022, prices have corrected, and sales volume is on the rise again in 2025. This normalization phase changes the game: one no longer buys hoping for automatic appreciation, but by building a solid rental yield from the start.
Thermal sieves and DPE schedule: the negotiation lever that the market underestimates
When visiting a property rated G in the energy performance diagnosis, the first reaction is often to walk away. This is precisely where the widest negotiation margins lie in 2024.
Properties rated G have already been banned from rental since January 2025. Properties rated F will follow in 2028, and those rated E in 2034. This regulatory timeline creates measurable selling pressure: a landlord forced to renovate or sell accepts significant discounts.
In practical terms, one can acquire an apartment rated F or G well below the local market price, undertake energy renovation work, and then rent the property out with a compliant DPE. The gain lies at two levels: the negotiated purchase price and the increase in rent after renovations. Returns vary depending on the condition of the building and location, but the mechanics remain the same.
To discover investment on Le Top Immobilier, you will find profitability analyses that specifically incorporate this type of purchase-renovation scenario.
- Check the current DPE and estimate the cost of moving to class D or C before making any purchase offer
- Include the amount of energy renovation aids (notably MaPrimeRénov’) in the financing plan
- Calculate the target rent after renovations by consulting local rental references, not national averages
Real rental yield: what the gross rate does not show
Most listings display a gross yield. One divides the annual rent by the purchase price to get a reassuring percentage. This figure says almost nothing about the actual profitability of a real estate investment.
The net yield incorporates charges, taxation, rental vacancy, and maintenance. A property advertised with a seemingly comfortable gross yield can fall much lower once these items are deducted. Two examples of often underestimated items: property tax, which has increased in many municipalities in recent years, and management fees if delegated to an agency.
Simulate before buying, not after
It is recommended to perform the complete calculation before the first visit, not after falling in love. Here are the lines to fill out:
- Realistic monthly rent (based on neighborhood listings, not on a high estimate)
- Monthly loan payment, including borrower insurance
- Non-recoverable condominium charges, property tax, non-occupant owner insurance
- Provision for rental vacancy (at least one month per year in tight areas, more elsewhere)
- Provision for repairs and ongoing maintenance
If the monthly balance remains positive after these deductions, the project holds. Otherwise, it is better to give up an attractive property than to incur a negative cash flow for twenty years.
Mortgage in 2024: balancing between rates and duration
Loan rates have risen significantly compared to the 2020-2021 period. We probably won’t see rates below 1% for a long time. The question is no longer “should we borrow?”, but “for how long and with what contribution?”.
Extending the loan duration reduces the monthly payment and improves monthly cash flow. In return, the total cost of the loan increases. For a rental investment, the loan duration should be calibrated to the wealth-building objective, not solely on repayment capacity.
Personal contribution and leverage effect
Mobilizing a minimum contribution (notary fees and guarantee fees) allows one to keep cash for potential repairs or to absorb a rental vacancy period. The leverage effect of credit remains the main advantage of real estate compared to other investments: you invest with the bank’s money, and the tenant pays back a significant part of the monthly payment.
Many beginner investors inject too much contribution out of a reflex of caution. This reduces their ability to diversify later into a second property or another vehicle like SCPI.
Diversification: SCPI and real estate ETFs versus direct rental
Managing a property directly requires time, responsiveness, and a tolerance for unforeseen events (water damage, unpaid rent, tenant turnover). If one lacks the time or inclination for rental management, two alternatives deserve consideration.
SCPI allows investment in real estate without direct management, with accessible entry tickets. The distributed yield is generally below that of well-managed direct rental, but sectoral and geographical diversification reduces risk. Real estate ETFs, on the other hand, offer daily liquidity and broad market exposure, but with volatility comparable to that of stock markets.
Combine rather than choose
One can very well hold a direct rental property for yield and leverage, and complement it with SCPI shares to diversify without additional management effort. This mixed strategy better protects wealth than concentrating on a single property in a single city.
The real estate market of 2024 rewards investors who calculate before visiting, negotiate based on the DPE, and accept to combine multiple investment vehicles. Profitability is built on a spreadsheet before being confirmed on the ground.
