With mortgage rates stabilizing in 2025 and new energy requirements reshaping the rental housing stock, buying or investing in property is no longer assessed using the same indicators as three years ago. This article compares the factors that really affect the profitability and feasibility of a property purchase in 2026.
Mortgage rates, prices and transaction volumes: the state of the property market in 2026
| Indicator | Trend in 2024–2025 | Situation in 2026 |
|---|---|---|
| Mortgage rates | Started falling in 2024 | Stable, with rates still attractive (inflation remains a factor to watch) |
| Existing home prices | Declined over several quarters | Slight uptick during 2025, with some opportunities still available |
| Transaction volume (forecast) | Gradual recovery | Gradual recovery confirmed, though volumes remain below peak-year levels |
| Buyers’ negotiating power | Increasing | Still favorable, according to market observers |
Transaction volumes are still recovering from their peak-year levels. After declining for several quarters, prices have begun to edge up, narrowing the window for negotiation without closing it entirely.
Stable rates make borrowing costs more predictable for buyers. The greater uncertainty lies in future inflation, rather than in interest rates themselves. This combination—prices that are still negotiable, accessible financing and moderate transaction volumes—defines the landscape for property projects in 2026.
To keep up with these developments, Vox Libris’s property section brings together useful analysis and insights for buyers and investors alike.
Home energy performance: the factor reshaping rental returns
Most guides to rental property investment cover location and financing in detail. They spend less time on a factor that now directly affects a property’s rental potential and actual returns: its energy performance certificate (DPE).
Rental ban timeline in mainland France
Since January 1, 2025, homes rated G can no longer be rented out. Homes rated F will be affected from 2028, followed by those rated E from 2034. Rent caps for F- and G-rated properties add to these restrictions, reducing gross rental returns even before the ban takes effect.
For an investor, buying an F- or G-rated property without a renovation budget means acquiring an asset whose rental value will decline according to a known timeline. The theoretical return shown in a listing does not account for these constraints unless the DPE rating is factored into the calculation.
Energy audit required when selling
Since January 2025, sales of E-, F- or G-rated homes have required an energy audit in addition to the DPE. The audit outlines the work needed and its estimated cost. It gives buyers leverage in negotiations, but can also be a potential obstacle if the seller has not prepared for this requirement.
For buyers, the audit is a valuable source of information that helps them estimate renovation costs before making an offer.
Rental property investment in a condominium: the risk of shared renovation costs
Finding a property to renovate and improve its energy rating is one thing. Being able to carry out the work is another, especially in a condominium.
Renovations affecting common areas—such as façade insulation, replacing a communal heating system or repairing the roof—require a vote at a general meeting. An investor may be blocked by other co-owners’ refusal, even if the renovation is essential to keeping the property available for rent.
- Work on common areas requires approval by a majority at a general meeting, which can delay a project by several years
- A bill proposed easing voting rules for energy-efficiency renovations, but was still subject to the parliamentary process at the time of writing
- In the meantime, condominium investors face regulatory risks they cannot control on their own
This changes how a rental property in a condominium should be assessed. A property under single ownership—such as a detached house or an entire rental building—gives the owner greater freedom to decide on renovations, directly helping them keep the property compliant with rental regulations.
Rental returns and REITs: two distinct approaches to building wealth
Direct rental property investment and REITs (real estate investment trusts) serve different goals, even though both involve real estate.
With direct rental investment, the investor controls the property selection, management, renovations and rental strategy. Returns depend on the purchase price, expenses, taxes and occupancy rate. Actual net returns include the cost of energy-efficiency upgrades, which are often missing from online calculators.
REITs spread risk across a portfolio of properties managed by a management company. Investors do not have to manage tenants, oversee renovations or bear the cost of vacancies alone. In return, they do not choose the properties, pay management fees and have limited liquidity when selling their shares.
- Direct rental investment suits people who want to manage their assets and are willing to handle the day-to-day operations
- REITs are aimed at people seeking additional income without the burden of property management
- Comparing net returns after fees and taxes, rather than advertised gross yields, is the only reliable way to choose between the two
The choice between these two investment vehicles also depends on the amount available: REITs provide access to real estate with a lower entry cost than buying a property directly, making them a first step toward building a property portfolio without taking on substantial bank financing.
The 2026 property market remains accessible, but the factors guiding decisions have shifted. A home’s energy performance, its condominium status and the regulatory timeline now weigh as heavily as the price per square meter or mortgage rate when determining whether a purchase will succeed.
