Energy Efficiency Ratings Drive Up Property Prices in France's 2025 Real Estate Market

In 2025, France’s real estate market is showing signs of recovery with a notable influence from energy efficiency ratings on property values. According to the Conseil supérieur du notariat, the market recovered after two years of decline, with transaction volumes increasing over 10% from 832,000 in 2024 to an estimated 921,000 by September 2025. While house prices remained largely stable, apartment prices rose slightly by 1.3% in the third quarter.

Energy performance labels have become critical in determining property prices. Apartments with better energy efficiency ratings (A-B) sell for significantly higher prices than those classified as thermal sieves with F and G ratings. For example, in Marseille, A-B rated apartments sold for an average of €204,000 compared to just €110,000 for F-G rated ones in 2024. This pattern holds across other cities like Toulon, Grenoble, and Perpignan. The price multiplier for energy-efficient apartments sized 50 to 60 square meters is about 1.4 times that of inefficient ones, reflecting the market's awareness of future energy costs and renovation requirements.

The growing reluctance of buyers to invest in poorly rated thermal sieves is driven by rising energy bills, upcoming rental restrictions, and anticipated renovation expenses. The gap in price between top and bottom energy ratings, although slightly narrowing from 1.5 to 1.4 times since 2021, remains significant and varies by location. Larger homes also show a strong premium based on energy efficiency— in Lille, an energy-efficient house sold for €341,000 while a similar inefficient property fetched €166,000.

This trend highlights how sustainability standards are reshaping housing demand and valuations, signaling an increased financial incentive for sellers to improve their properties’ energy performance.