Real estate investment in France is undergoing a period of restructuring. New housing is experiencing a significant decline (construction starts at their lowest in forty years), transactions in the existing market are rebounding, and a new tax system will replace the Pinel starting February 2026. These three parameters are changing the yield and tax considerations for any investor looking to maximize their rental return.
Net rental yield: what traditional formulas do not capture
Most real estate investment guides present gross yield as the primary indicator. The calculation is simple: annual rents divided by purchase price. This ratio, displayed everywhere, masks several factors that erode actual yield.
Property tax, non-recoverable condominium fees, non-occupant owner insurance, and periods of rental vacancy significantly reduce net yield. In cities subject to rent control, an additional factor weighs in: nearly 40% of listings exceed legal ceilings, according to a study reported by the Housing Foundation.
This figure indicates a market where listed rents do not always reflect the legally applicable rent, distorting yield projections.
Before comparing two properties, it is better to establish a calculation framework that incorporates these factors from the outset. Those who wish to invest with BTB Immobilier gain access to analyses that include these parameters to calibrate their project.
| Indicator | What it measures | Main limitation |
|---|---|---|
| Gross yield | Annual rents / purchase price | Ignores charges, taxes, and vacancy |
| Net yield | Rents – charges – property tax / purchase price + fees | Does not account for tax regime |
| Net-net yield | Net rents after actual taxation | Depends on marginal rate and chosen regime |
Net-net yield is the only reliable indicator for comparing a rental investment to a financial placement. A two-point gap between gross and net-net is not exceptional, especially in tight areas.
Jeanbrun scheme and real estate taxation: what changes since 2026
Since February 21, 2026, the Jeanbrun scheme replaces the Pinel. Its mechanism is based on tax depreciation without zoning, redistributing the cards between new investments and renovated older properties.
The absence of zoning means that a property located in a medium-sized city can benefit from the same tax advantage as a property in a tight zone. For the investor, this opens up markets where purchase prices remain contained and where gross yield is naturally higher.
At the same time, the Denormandie scheme remains active for older properties requiring renovations in certain areas. The choice between Jeanbrun and Denormandie depends on the type of property, the amount of renovation work, and the investor’s tax regime.
- Jeanbrun: tax depreciation without zoning constraints, suitable for new or equivalent properties, including in medium-sized cities
- Denormandie: tax reduction linked to renovation in older properties, conditioned on a percentage of work relative to the total cost
- LMNP under actual regime: accounting depreciation of the property and furniture, relevant for furnished rentals with high charges
The choice of tax regime can affect net yield more decisively than the choice of neighborhood. An investor in a high marginal rate who opts for micro-property where the actual regime would be more advantageous loses a fraction of their yield each year.
Renovated older properties versus new in 2025-2026: market data
Investment in new housing fell by 12.9% in 2025 after a decline of 18.4% in 2024, according to data from the Ministry of Ecological Transition. Construction starts are at their lowest in four decades. This contraction reduces future supply and limits opportunities in new housing.
Transactions in the existing market rebounded in 2025, driven by a slight easing of rates around 3%. This context creates a window for renovated older properties: acquisition prices still accessible, potential for capital gains in the medium term if new supply remains constrained, and eligibility for the Denormandie scheme for properties requiring work.
| Segment | Trend 2024-2025 | Yield opportunity |
|---|---|---|
| New | Significant decline in construction starts | Rare supply, high prices, Jeanbrun scheme |
| Renovated older | Rebound in transactions | Contained prices, Denormandie, potential capital gain |
| Older without work | Active market | Immediate yield, attention to DPE |
The DPE (energy performance diagnosis) increasingly impacts the value of older properties. A property rated F or G is gradually becoming prohibited for rental, which necessitates incorporating the cost of energy renovation into the yield calculation.
Rent control and rental yield: an underestimated risk
Rent control affects an increasing number of French municipalities. Available data shows that nearly one in two listings exceeds the ceilings in Paris, and the proportion remains high in other affected cities.
For an investor, this observation has two implications. First, yield projections based on market rents may prove overly optimistic if the tenant contests the rent or if controls are tightened. Secondly, investing in an area not subject to rent control offers freedom in setting rent that protects yield.
Medium-sized cities not affected by rent control, combined with the Jeanbrun scheme without zoning, represent a diversification axis that standard calculations do not highlight.
Housing accounts for nearly a third of the budget of French households, ensuring structural rental demand. The most useful data for an investor remains the net-net yield calculated on their own marginal tax rate, with the right tax regime. Everything else, location, property type, scheme, follows from that.
