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EXCLUSIVE – Improving the energy performance rating of your home has a cost… But the operation can be very profitable for owners, and even more so in Paris. Demonstration.
© Gary Yeowell/GettyImages
Carrying out renovation work before resale, a truly profitable operation? A study published by PriceHubble, exclusively for Capital, answers this question. To achieve this, the real estate price specialist looked more specifically at the case of Paris. As we know, in the capital, many buildings were built in a Haussmann style during the 19th century. However, these buildings, although functional, were obviously not designed with contemporary insulation standards. We therefore find, within these buildings, many poorly insulated dwellings, whose performance assessed by the energy performance diagnosis (EPD) is poor. Housing which may or may not have been the subject of renovation work over the decades.
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Prices which differ depending on the years of construction of the building
PriceHubble first compared the median prices of apartments* in Haussmann buildings depending on the year of construction of the building, between January 2023 and March 2024. Old-world charm obliges, the price per meter square footage is thus much higher for buildings built in the 19th century than for contemporary buildings. 12,100 euros for buildings erected between 1840 and 1880… compared to less than 10,600 euros for those built between 1990 and 2000.
A big premium for housing best evaluated by the DPE
Secondly, PriceHubble compared, for old and newer buildings, the prices of housing according to their DPE rating. Here we have focused on three periods of construction: the 1840s-1860s, the 1900s-1920s, and finally the 1960s-1980s**.
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The prices of C or D housing on the energy performance diagnosis thus turn out to be significantly higher than properties rated F or G in old buildings. For example, for buildings built between 1840 and 1860, the median price of housing rated D reaches 12,500 euros per square meter, compared to only 10,500 euros on average for properties rated G. That is 2,000 euros difference per square meter !
Work largely profitable for the oldest buildings
Under these conditions, the right question to ask for an owner who would like to optimize the sale of his home is the following: is the price of the work higher than the added value that he will be able to reap after having carried it out? In other words: does he gain or lose money by renovating his home? First of all, it is necessary to check whether it is technically possible to carry out effective work in the apartment alone. Or on the contrary, if the work must be financed at the level of the building and the co-ownership.
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So let’s take the case where the work is carried out by the owner alone. The rental apartment manager Imodirect provides some interesting estimates. For apartments of 26 square meters, on average, the owner must pay 9,940 euros to make a two-letter jump on the DPE. Or around 382 euros per square meter of renovated housing. And even, “for the 9,940 euros that owners have to spend on average, they receive an average amount of aid of 3,157 euros», adds the property manager. Actual cost of the investment: only 6,800 euros. Owners, you will have understood: undertaking renovation work is not only good for the planet. The process is also good for your wallet.
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Methodology :
*The prices studied are those of the sales announcements published on the main portals (SeLoger, Leboncoin, Bien’ici, etc.) in 2023 and during the first quarter of 2024. That is to say the prices displayed before the actual signatures transactions with the notary, and possible negotiation margins.
**However, we excluded from the analysis housing rated A or B by the energy performance diagnosis, because they represent respectively only 0.1% and 0.5% of apartments put up for sale in Paris in 2023.
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