Real Estate in 2025: Reforms, challenges and prospects for condominiums, leases and construction

The year 2025 promises to be a year of change for the real estate sector. Between legislative reforms, new obligations and landmark court rulings, co-owners, property managers, lessors and builders must adapt to a rapidly changing environment.

In this article, we take a look back at the key issues that will shape the real estate landscape in 2025: the 60th anniversary of the 1965 condominium law, new energy renovation obligations, debates surrounding the monthly payment of commercial lease rents, and recent case law decisions in construction and housing law.

July 10, 2025 will mark the 60th anniversary of the law of July 10, 1965, which governs the status of condominiums. This longevity raises questions: despite successive reforms, this law remains the cornerstone of co-ownership operations in France.

A far-reaching reform had been envisaged through the codification of condominium law, but this ordinance was never adopted, leaving uncertainties as to future developments.

An event entitled "60 ans et après: évolution et défis du statut de la copropriété" will be held in July 2025, to take stock of the situation and examine future developments in the legal status of condominiums.

The collection of service charges is essential to the financial equilibrium of condominiums. In the event of non-payment, there are several guarantees available:

A forthcoming detailed article will analyze the effectiveness of these systems and the possible avenues for improvement.

Since January 1, 2025, it has been compulsory for condominiums with between 50 and 200 lots to carry out a collective energy performance diagnosis (DPE). This measure is part of a drive to boost energy renovation in buildings, in parallel with the generalization of mandatory work funds, now extended to co-ownerships with fewer than 51 lots.

An analysis of the main commercial lease decisions handed down in 2024 provides a better understanding of current issues. Topics covered include:

These developments in case law will give lessors and lessees a clearer picture of their rights and obligations in 2025.

The simplification bill presented in 2024 includes two major measures for commercial leases:

Although these proposals are intended to make the lessor-tenant relationship more fluid, they are still the subject of debate. They will be discussed again in 2025, and their adoption could profoundly alter the management of commercial leases.

As of January 1, 2025, homes with a G rating on the DPE may no longer be rented out. This ban is part of the government's policy to combat energy-hungry housing.

While some welcome this step forward for the energy transition, others criticize its overly brutal implementation, which risks exacerbating the shortage of available housing.

Some experts warn of the unexpected consequences of this measure, which could paradoxically restrict rental supply and complicate the situation of the most vulnerable households.

In a ruling handed down on January 6, 2025 (no. 22/05642), the Bordeaux Court of Appeal reiterated that a landlord can validly give his tenant notice to carry out energy improvement work, provided that this work requires the tenant to vacate the premises.

A decree coming into force on January 1, 2025 modifies the energy performance standards for new buildings, continuing the momentum of the RE2020.

These new requirements are designed to improve energy efficiency and reduce the carbon footprint of buildings. However, they require rapid adaptation on the part of developers and builders.

On January 16, 2025 (no. 23-17-265), the French Supreme Court (Cour de cassation) ruled that, in the event of a claim under the ten-year warranty, the client is free to choose between compensation in kind or a fine.

This decision strengthens the position of project owners in construction disputes.

In a decision dated December 18, 2024 (n°490711), the Conseil d'Etat ruled that a building permit obtained by fraud could not be regularized by an amending permit.

This case law confirms the courts' intransigence in the face of attempts to circumvent town planning regulations.

In the general policy statement of January 14, 2025, it was stated that housing policy needed to be thoroughly rethought.

However, players in the real estate sector remain skeptical, pointing to a lack of concrete action and the need for strong measures to revive the market.

Faced with the tensions between condominium owners and managing agents, a working group has been set up to reflect on the future of the profession.

Some experts are calling for a reform of the syndicate's business model, to improve the quality of services provided to condominiums.

The year 2025 marks a turning point for the real estate sector: between the modernization of condominium law, new obligations for lessors and changes in case law, professionals and private individuals alike must adapt to a regulatory framework in perpetual transformation.

Keep abreast of legislative and jurisprudential developments to anticipate tomorrow's challenges!