DPE reform 2026: impact on property values and electric heating in France

From January 1st, 2026, France’s energy performance certificate (DPE – Diagnostic de Performance Énergétique) is evolving. While this reform is primarily technical, its implications are already reshaping the real estate market, influencing property values, buyer behavior, and sales dynamics.

For owners, investors, and international buyers, understanding these changes is now essential.

A revised calculation that favors electric heating

The key change lies in the electricity conversion coefficient, which decreases from 2.3 to 1.9. This adjustment better reflects France’s low-carbon electricity mix, largely based on nuclear and renewable energy.

Until now, electrically heated properties were often penalized in DPE ratings. With the reform, many of these homes will automatically benefit from improved energy classifications, without any renovation work.

Millions of properties upgraded

The impact is significant. Around 850,000 homes are expected to exit the “energy inefficient” categories (rated F or G), while several million properties will gain at least one energy class.

This is particularly relevant for apartments and urban properties, where electric heating is widely used.

However, it is important to note that this is purely a calculation adjustment. Actual energy consumption and utility bills remain unchanged.

DPE: a mandatory document in any real estate transaction

In France, the DPE is a legally required document and forms part of the technical diagnostic file (DDT). It must be provided:

• from the moment a property is listed for sale or rent
• in all real estate advertisements, with clear energy rating display
• at the preliminary agreement (compromis de vente) and final deed

DPE reports are valid for 10 years (for those issued since July 2021) and are legally binding. This means buyers can rely on them, and sellers are accountable for their accuracy.

As a result, the DPE plays a central role not only in informing buyers, but also in price negotiations.

Early market insights: a shift in buyer perception

A recent survey conducted among 2,001 French residents highlights a clear shift in perception following the reform.

Today, 54% of buyers say they are more likely to purchase a property with electric heating, while only 4% report increased reluctance.

More importantly, electric heating is no longer seen as a major drawback. 67% of respondents consider it not to be a barrier to purchase.

A direct impact on pricing and perceived value

Energy performance is becoming a stronger value driver.

52% of buyers are willing to pay more for a property that improves by one or two energy classes. Among them, some accept price increases exceeding 3%.

However, caution remains. Nearly half of buyers are not willing to pay a premium without tangible proof of actual performance and controlled energy costs.

Negotiation margins and time on market

Improved DPE ratings may also reduce negotiation margins. Over half of buyers expect less room for negotiation on upgraded electric properties.

In parallel, 63% believe these homes will sell faster, suggesting a positive impact on transaction speed.

Sellers are also optimistic, anticipating either higher selling prices or shorter marketing periods.

Electricity gaining ground over other energy sources

At equal price and location, electric heating is becoming more attractive than gas for a growing share of buyers.

A D-rated property with electric heating is now perceived as more appealing than a comparable gas-heated home, reflecting a broader shift in energy preferences.

Real performance becomes the key decision factor

Beyond the DPE label, buyers now expect concrete evidence of performance.

The most decisive criteria include:

• insulation quality
• modern heating systems
• smart energy management solutions
• actual energy bills
• a recent and reliable DPE

This marks a fundamental shift. The DPE remains essential, but it is no longer sufficient on its own.

A specific opportunity for second homes on the French Riviera

In markets such as the French Riviera, where second homes represent a significant share of transactions, the DPE reform carries particular importance.

Many apartments, especially in prime coastal locations, rely on electric heating and may benefit from improved energy ratings under the new calculation.

For international buyers and investors, often focused on regulatory clarity and rental potential, this reform enhances the attractiveness of such properties. It may also reduce exposure to future rental restrictions linked to low energy ratings.

In this context, the DPE becomes a strategic tool for assessing long-term value, beyond occasional use, particularly in high-demand lifestyle destinations.

A technical reform with strategic implications

While the 2026 DPE reform is primarily a technical adjustment, its impact is far-reaching. It reshapes property perception, influences pricing strategies, and affects transaction timelines.

For both sellers and buyers, integrating this new energy framework into real estate decision-making is now essential.

Need expert guidance?

The DPE 2026 reform creates new opportunities, but also requires a precise understanding of its real impact on your property or investment.

The teams at Côte d’Azur Sotheby’s International Realty are here to guide you at every stage, from valuation to marketing strategy, integrating energy performance and evolving market dynamics.

Contact one of our agencies to benefit from a tailored analysis and maximize the value of your property.