As the calendar turns to 2026, France’s real estate market is entering a new era defined by stabilization, regulatory updates, and greater predictability for buyers and investors. With more controlled credit rates, evolving support programs for home ownership, and heightened energy efficiency standards, understanding this year’s essential changes is key to making informed decisions—whether you’re buying your first home, investing, or selling.
Mortgage Rates Settle: Clarity for Buyers and Banks
One of the most noticeable shifts as 2026 begins is the stabilization of mortgage rates. While rates haven’t dropped dramatically, they have remained steady at levels that are now familiar to both banks and buyers. According to recent data, average mortgage rates in January 2026 hover around 3.1% for 15-year loans, 3.25% for 20 years, and 3.35% for 25-year loans. This translates into more transparent and predictable borrowing conditions, helping prospective homeowners reassess their purchasing power and confidence in securing financing—especially for new, energy-efficient homes.
New Private Landlord Status: Awaiting Activation
Investors have been closely watching the rollout of new legal status for private landlords, designed to make rental investing more attractive by offering simplified tax frameworks and the option to depreciate property value. While this reform was adopted by parliament in late 2025 as part of the 2026 Finance Law debates, its actual implementation is on hold until the budget is officially enacted. Therefore, while the regulatory framework seems promising, investors should remain cautious until the final details, including application dates and exact conditions, are confirmed.
Higher Agency Fees for Rentals
From January 1, 2026, agency fees for rental properties have increased, in line with the Rent Reference Index. These revised ceilings bring a slight uptick in costs for both tenants and landlords, particularly in sought-after urban areas.
Energy Performance Reforms: Improved Ratings and Mandatory Collective DPE
Energy efficiency requirements have taken center stage in 2026. The method for calculating the Energy Performance Diagnosis (DPE) has changed, with the electricity conversion coefficient reduced from 2.3 to 1.9. As a result, homes heated with electricity may see their energy labels improve—a boon for property values and their appeal to renters.
Additionally, all condominiums (regardless of size) now must have a collective DPE, and work plans for energy improvements must be systematically included in real estate transactions. In today’s France, energy performance isn’t optional—it shapes the entire real estate process.
Tourist Rentals: Tax Rules Remain Tighter
Tighter tax rules for tourist rentals introduced in 2025 continue into 2026. For owners, the micro-entrepreneur (micro-BIC) regime now differentiates between classified furnished rentals (eligible for a 50% allowance up to €77,700 of revenue) and unclassified rentals (30% allowance, capped at €15,000). This move is intended to encourage long-term rentals and help alleviate rental shortages in high-demand areas.
Temporary Suspension of MaPrimeRénov’ Grants
Due to the pending 2026 budget, new applications for the popular MaPrimeRénov’ renovation grant are temporarily on hold. Existing applications filed before December 31, 2025, will still be processed, but no new files can be registered until the budget is finalized. This uncertainty has increased the appeal of properties that are already energy-efficient.
Higher Returns on Home Savings Plans
On a brighter note, since January 1, 2026, new Home Savings Plans (PEL) now offer a higher guaranteed rate of 2%, up from 1.75% for plans opened in 2025. This boost makes the PEL a more attractive option for long-term real estate planning and strengthens borrower profiles.
Capital Gains Tax on Second Homes: Still Under Debate
There is ongoing debate about potential changes to capital gains tax for second homes. While several amendments to reduce holding periods before exemption or overhaul the calculation method have been discussed, nothing is set until the 2026 Finance Law is passed. For now, the existing rules remain in effect.
PTZ Zero-Interest Loans: Expansion to Benefit More Buyers
The Zero Interest Loan (PTZ) program is poised for further transformation. Proposed revisions for 2026 include higher income and property cost ceilings based on geographic demand—a change likely to benefit more first-time buyers, especially in large cities where price ceilings had previously limited access. Additionally, the PTZ may soon be extended to buyers purchasing previously occupied properties in Solidarity Real Lease (BRS) arrangements, increasing flexibility and homeownership opportunities.
As with other legislative changes, these PTZ modifications hinge on the final adoption of the budget.
2026 Finance Law: Awaiting Final Adoption
As of January 1, 2026, the government’s budget bill is yet to be ratified, and several major measures remain in limbo. Parliament is expected to finalize the budget within the first quarter, which will set the stage for when new regulations come into effect.
Bottom Line: Opportunities in a Modernizing Market
France’s real estate sector is growing more stable and transparent, with strong focus on energy efficiency and clearer lending rules. While some reforms are pending until the final budget is in place, today’s market presents well-defined opportunities—especially in the new-build sector, which boasts higher energy standards and favorable financing options.
Whether you’re a first-time buyer, investor, or homeowner, keeping abreast of these major changes will help you anticipate trends and make well-timed decisions in France’s dynamic property market throughout 2026.
