Pinel+ will cost investors more, Real Estate News/Analytics

Starting next year (2023 and 2024), investors wishing to take advantage of Pinel’s tax system will have to meet several conditions in order to maintain full rate tax benefits. Pinel’s current rates (12%, 18% and 21% for lease commitments of 6, 9 and 12 years respectively) will be maintained for new housing located in a City Policy Priority Area or for housing that meets both exemplary environmental standards and respecting several criteria of quality of use and comfort.

Then we will talk about “Pinel+” for this second category, all the characteristics of which we now know:

  • Minimum area of ​​each type: 28 m² for T1, 45 m² for T2, 62 m² for T3, 79 m² for T4 and 96 m² for T5.
  • Private open spaces with a minimum area of ​​3m² for T1 or T2, 5m² for T3, 7m² for T4, 9m² for T5.
  • Of the 3 rooms (T3), these dwellings must also have an opening outside a window or French type on at least two facades of different orientations, in other words a double exposure that most often allows the apartment to be see through. .

Energy and environmental efficiency

In terms of environmental performance, they will need to go further than the new RE2020 rules that came into effect for building permits filed from January 1, 2022, anticipating requirements scheduled for 2025 from next year. RE2020 really needs to evolve with increasing demands every year. 3 years (2025, 2028 and 2031). For the same residential premises purchased in 2024, they must also comply with the class A of the DPN.

Such performances will, of course, have a cost, which we have tried to quantify. The RE2020 milestone, scheduled for 2025, imposes stricter carbon footprint criteria both in terms of energy consumption (in particular heating) and building material exposure. The first consequence will be the practical abandonment of gas boilers, which today remain the most common type of heating in collective housing, in favor of heat pumps (HP) powered by electricity. In terms of construction, there will be a need to use more biomaterials such as wood.

from 6% to 9% additional costs

Experts from Pôle Habitat of the French Building Federation (FFB) have calculated that switching from a dual-use gas boiler (heating and hot water) to a dual-use heat pump will already lead to additional costs of 5-6%. In terms of materials, the professional body mentions, for example, the transition to wood fiber insulation or the widespread use of parquet floors with additional costs of 1% to 3%. ” In total, this gives from 6% to 9% additional costs, depending on construction methods, energy supply directions and geographical location. concludes the FFB Housing Department.

In addition to costs, experts emphasize that the problem will be related to heat pump equipment, because this market today is less than 5% in collective housing. Thus, a too abrupt transition (between 30% and 50%) will be difficult for manufacturers and companies, especially in the current environment, when heat pumps for private houses (mature and stable market) are already rapidly increasing delivery times (more than 6 months in some cases). The FFB Housing Department recommends, in particular, that more attention be paid to “green gas”, i.e. gas produced, for example, as a result of methanization. Another alternative is to connect to the district heating network, but this is rarely possible.

Less profitable Pinel+

In any case, it is difficult for an investor to imagine how these additional costs will not be taken into account in the sale price of Pinel + housing. Moreover, developers already have to deal with a jump in prices for raw materials, from which many building materials suffer. So, upon arrival, these Pinel+ properties will cost investors more for the same rent on a comparable area (with the same ceilings as today). Thus, Pinel+ will be slightly less profitable, even if we must not lose sight of the legacy aspect of such an investment. Pinel+ will still be of higher quality and therefore may suit a project in which the investor wishes to return his apartment after the expiration of the tax credit (6, 9 or 12 years of ownership) or transfer it.

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