How France's energy ratings system affects property prices

There is a sharp difference in price for urban properties with a good Diagnostic de Performance Énergétique (DPE) rating compared with those with bad ones, a new study has shown.

DPE certificates are required for the sale of all houses and many flats in France.

The certificates give a rating from A to G, with A denoting property with the best energy efficiency, and G the worst. 

Introduced in 2016, the scheme was first based on energy bills. However, the rules changed in 2021 to make the certificates dependent on an on-site survey and standardised form-filling by a certified assessor.

The government has made DPE ratings a key element in its drive to reduce carbon dioxide emissions from housing, based on the theory that buyers will be more attracted to properties with good energy scores.

Read more: Letters: France's energy audit system does not work for stone properties

Energy performance and house sale prices

This is being reflected in sale prices, a survey by renovation specialist Ithaque seems to confirm, based on data gathered by notaires in 2024.

It looked at sales figures for houses with a living space of 150m², and found that in Bordeaux, the city with the biggest difference, the average price for a house with an A or B rating was €755,800.

In comparison, the average price for a house with a F or G rating was €501,637 – a difference of €254,163.

Bordeaux’s city limits are relatively small and enclose its wealthiest areas. Compared to surrounding communes, there are relatively few large houses in the centre, which accounts for the high prices.

Eight other cities also showed significant price differences for houses with good A or B certificates compared to F and G ones.

For flats, the study looked at those with 40m² of living space. Nice had the biggest difference in price, with A- and B-rated apartments selling for an average of €227,816, while F- and G-rated ones averaged €178,559 – a difference of €49,258.

Nantes was in 10th place on the list with a €18,435 price difference.

Like many French surveys, Ithaque’s concentrated on cities and large towns, which means it is not necessarily representative of conditions across the country, especially in smaller towns and villages where there is a higher proportion of stone-built, pre-1948 housing.

Read more: France plans crackdown on fraud around obligatory energy ratings for homes

Low DPE grades

It was in 1948 that national standards for housebuilding, on which DPE forms are based, were introduced.

Although older, stone-built houses are often cool in summer and warm in winter – as is the same in well-insulated homes, they often receive low DPE grades.

Old houses also often have “breathing” walls which regulate humidity. Covering them with insulation can lead to damp problems.

Various government initiatives have been launched to try to correct the anomaly of such houses almost always receiving poor DPE ratings, so far with little result.

Online estate agent SeLoger has issued advice for owners of houses built before 1948.

It says a first step should be an energy audit – a more detailed and expensive certificate – to estimate how much will have to be spent to raise the property’s current DPE rating.

It then recommends focusing on insulation, especially of the roof, but also in the walls if this can be achieved without causing damp problems.

Installing good double glazing and a modern heating system can also help raise DPE ratings.