By order published in the Official Journal of October 3, 2023, the government has adjusted the zoning of 154 French cities, moving them into a stressed zone (A or B1) where there is a strong imbalance between supply and demand for housing, while they were previously in the least stressed zone (B2), or even relaxed (C).
This will encourage the production of new housing in these municipalities and offer more transitional rental housing (at below-market rents).
The tight zone reclassification actually makes them eligible for Pinel’s rental investment investment scheme, which is due to end on 31 December 2024. This offers a tax break for buyers of new properties provided they rent for a certain period while meeting rent caps. .
A measure with immediate effect that potentially affects 4.5 million people in France.
Seven cities change zone in Alsace
In Bas-Rhin, two towns will therefore move from zone B2 to B1, namely Bischwiller and Haguenau, and one town will move from zone C to zone B1, Saverne. In Haut-Rhin, four towns formerly in the B2 zone are now in the B1 zone: Colmar, Illzach, Wittenheim and Cernay.
In these municipalities, it is now possible to use the Pinel rental investment system, which is only valid in restricted areas (A, A bis and B1) for the purchase of new collective housing intended for rent.
In these municipalities, it is now possible to use the Pinel rental investment system, which is only valid in restricted areas (A, A bis and B1) for the purchase of new collective housing intended for rent.
Rent ceilings are now higher in Strasbourg and Illkirch-Graffenstaden
In Pinel, the rent that a landlord can charge their tenant must respect ceilings depending on the tight area where the property is located. For leases concluded in 2023, it is EUR 18.25 per m² in zone A bis, EUR 13.56 per m² in zone A and EUR 10.93 per m² in zone B1 (the amount of rent also depends on the living area).
If 154 French cities leave the relaxed zone, 55 others will remain in the tense zone, but will change their letter after the publication of the decree of October 3, 2023. This is the case of Bas-Rhin in Strasbourg and Illkirch-Graffenstaden, which are moving from zone B1 to zone A. The Pinel rent in these two cities therefore increases from €10.93 to €13.56 per m². This makes it possible to increase the profitability of the rental investment.
In addition, in order to rent accommodation in Pinel, a tenant must respect resource caps. With the zone change, more people in Strasbourg and Illkirch-Graffenstaden may be eligible for it. For example, for 2023, several tenants must not have a reference tax income in 2021 of more than €62,555 in zone A, compared to €45,558 in zone B1.
Better to invest in Pinel in 2023 than 2024
In 2023, if the landlord agrees to lease the property for six years, he will receive a tax credit of 10.5% of the total amount of its acquisition (up to a ceiling of EUR 300,000 per year and EUR 5,500 per m²). The tax benefit is 15% for a 9-year lease and 17.5% for a 12-year lease.
It’s better to invest now because in 2024, Pinel’s tax credit will decrease to 9% for a six-year lease, 12% for a nine-year lease and 14% for a 12-year lease commitment.
Specifically, it is possible to use more favorable discounts with the Pinel+ system until 2024, where they amount to 12%, 18% and 21% depending on the same rent obligations (these are the rates valid until the end of 2022), provided that the property meets the quality of use criteria and energy and environmental friendliness.
The impact of measures on PTZ will be monitored tomorrow (part 2)