Real estate tax system popular with Bordeaux rental investors, the
Pinel law in Bordeaux allows the creation of new real estate assets, without necessarily making a contribution, and to rent it out with a defined commitment period. This results in participation in the rental market and above all the possibility of tax exemption of up to €63,000.
The readability of the system is called into question with, at the end of 2024, its deletion announced. While the
new real estate market in Bordeaux is experiencing strong rental tension, what future lies ahead for
investors in Bordeaux for the post-Pinel period?
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The principles of the Pinel law in Bordeaux
Loi Pinel, who are you?
It was in September 2014 that the
Pinel device, successor to the Duflot law. The objective is to encourage rental investment in the new real estate market while guaranteeing intermediate households access to housing. Investing in real estate is a popular solution in France since it is the preferred investment of the French, ahead of life insurance, savings or cryptocurrency.
The conditions
Eligibility for the Pinel law in Bordeaux is subject to certain conditions. The apartment must be new or off-plan, unfurnished, located in a collective housing building in an eligible Pinel zone: A, A bis or B1. This is the case in Bordeaux, as well as for the surrounding municipalities 20 km away, which is part of zone B1. The accommodation must comply with RT2012 or BBC2005 thermal regulations to regulate energy consumption.
The investor undertakes to rent his
new apartment within 12 months following delivery and over a minimum of 6 years. This duration can be increased with 3 additional years, renewable twice for a maximum duration of 12 years. In Bordeaux, a rent ceiling is set at €10.51/m² of living space (€13.04 in zone A and €17.55 in zone A bis) for the tenant subject to the following resource ceiling:
| Household composition |
Single person |
As a couple |
Single/Couple +
1 person. dependent |
Single/Couple +
2 people. dependent |
Single/Couple +
3 people. dependent |
Single/Couple +
4 people. dependent |
Surcharge/pers.
from the 5th |
| Pinel B1 area |
€31,280 |
€41,772 |
€50,233 |
€60,643 |
€71,340 |
€80,399 |
€8,969 |
Note that the tenant can be an ascendant or descendant of the owner, on the sole condition of not being attached to the same tax household. He must also make the accommodation his main residence.
Finally, to avoid any abuse, the investor is limited to 2 annual real estate investments within the limit of a maximum overall investment of €300,000/year, with a ceiling of €5,500/m². Thus, we ensure that the limit of €10,000 of annual tax benefits set is not exceeded, the
Pinel device being considered a tax niche.
The key arguments
The 1
er and main advantage of
Pinel device is financial. The objective of a
rental investment in Bordeaux, in addition to achieving a good rental profitability rate (+ 5.5%), is to benefit from a tax reduction. As we explained above, an investor undertakes to rent his property for a period of 6, 9 or 12 years. This duration results in the following tax reduction:
| Rental commitment duration |
6 years |
9 years old |
12 years |
| Tax reduction* in 2021 |
12% |
18% |
21% |
*Percentage on the investment amount
Rental investment also allows you to best prepare for your retirement. There are three solutions at the end of the legal rental period: continue to receive a freely set rental income, resell your apartment to receive a capital gain or, quite simply, move in.
Furthermore, unlike the Duflot law, the
Pinel law in Bordeaux authorizes intra-family rental. Thus, renting to your child or parents becomes possible, always provided that the tenant is outside the tax household. A great opportunity to counter rental tension when you are a student or retired.
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The Bordeaux wedding
In Bordeaux, the
Pinel Scheme aims to meet an ever-increasing demand. Due to its location, its practicality (2 hours from Paris by TGV), its rich employment area and its sought-after living environment, Bordeaux is one of the most sought-after French cities.
This situation is illustrated by the words of the president of the Fédération des Promoteurs Immobiliers (FPI) of Nouvelle-Aquitaine, Mr. Pierre Vital, on France Bleu:
"Last year (2020, editor's note), we saw 2,500 sales, which is still very low compared to what we usually did (...). Sales are increasing and are depleting the stock. The supply we are going to have today is supply that was developed a year and a half ago.". In reality, it is -25% of the commercial housing supply that is proposed compared to 2020.
Croix Blanche, Le Bouscat, Saint-Seurin... All the districts of Bordeaux where to invest are affected by this imbalance, which leads to an increase in the price per m² of new apartments. While in 2020 the average sale price was €4,193/m², it increased by +2.8% in 2021, or €4,312. These figures reflect the craze for
real estate in Bordeaux, where the stone continues to increase in value.
However, the latest figures from the FPI highlight that the city of Bordeaux is experiencing an increase of +76% in new apartment launches in 2021 in one year. Proof of this is that the Bordeaux real estate dynamic is present. In financial terms, this is an opportunity for
rental investors looking for real estate tax exemption in Bordeaux.
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SuperPinel, Pinel+… What future for the Pinel law in Bordeaux?
If investing under the Pinel law in Bordeaux still proves interesting, the system as we know it today will be reviewed after December 31, 2022. From 2023, a gradual reduction in the tax reduction is planned:
| Rental commitment duration |
6 years |
9 years old |
12 years |
| Tax reduction until 2022 |
12% |
18% |
21% |
| Tax reduction in 2023 |
10.5% |
15% |
17.5% |
| Tax reduction in 2024 |
9% |
12% |
14% |
But that's not all since the Minister Delegate in charge of Housing Emmanuelle Wargon wants to go further. The objective is to launch a new system, a sort of “super pinel”, in coexistence with the current Pinel from 2023 before replacing it definitively in 2025. The ambition is to contribute to a rebound in the new real estate market to respond to demand, in particular by encouraging “green” construction.
To do this, Emmanuelle Wargon emphasizes the importance of new criteria:
”I hope that the criteria for this super-Pinel are not only environmental (…). We must reinject quality of use, which constitutes the unthought of the period which is behind us, for a certain number of mandates..
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Conditions under study
RE2020
Today, eligibility for
Pinel law in Bordeaux requires compliance with the BBC2015 or RT2012 standard. With the evolution of the system, new apartments will have to meet new thermal regulations,
RE2020. This label guarantees that housing does not consume energy and contributes to reducing its environmental impact with reduced carbon emissions.
Concrete example, Bordeaux experiences heat waves in summer. A new apartment that complies with RE2020 is an apartment that can guarantee freshness and comfort, while limiting its energy consumption. Committed, the Minister for Housing measures the issues:
“The ecological transition is no longer a question, it is already here, it is not bad news but an opportunity.” while qualifying RE2020 as a
“complement (…) which will become an element of the economic model of the sector, as well as an element of the acceptability of more environmentally friendly constructions”.
RE2020 is emerging as a solution in France to achieve the ecological objective of Carbon neutrality in 2050. Thus, the message addressed to
real estate investors in Bordeaux is twofold: encouraging them to invest in new real estate while engaging them in the fight against global warming.
The quality reference
“It is not reasonable to let the adjustment be made by lowering the ceiling height of the property, reducing their surface area,…”.. In addition to environmental criteria, Emmanuelle Wargon wants quality of use criteria to accompany the implementation of “super Pinel”.
This benchmark was established thanks to the expertise of François Leclerc, architect-urban planner, and Laurent Girometti, general director of EpaMarne EpaFrance. Presented on September 8 during the 2
th round table
“Living in the France of tomorrow”, it provides for the improvement of the quality of housing on several axes, in particular the good ventilation of the latter, the brightness and the living space.
First, the size of the accommodation. The minimum surface area of the apartment must be between 28m² for a T1 and 96m² for a T5 (T2 45m², T3 62m², T4 79m²). It is recommended that the living room/kitchen area be at least 23m² for a T1, 25m² in T2, 27m² in T3, 29m² in T4 and 31m² in T5. Concerning the bedrooms, the recommended minimum surface area is 10.5m² with at least one of the bedrooms being 12m². This will make storage and arrangements easier.
The ceiling height is also studied since it must not be less than 2m70. Finally, double orientation is imposed, desired for T2s and studios (which cannot always meet this criterion).
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Invest or postpone: what to choose in Bordeaux?
No need to look for the answer in the Water Mirror, investing in stone remains and will remain a good investment, whatever your objective, provided you have carefully prepared your thoughts.
While it is true that prices per m² have increased, the latest FPI report records an increase of +21% in housing reservations in Bordeaux in 2021, including +17%, or 639, just for investors. A trend which makes rental profitability more reliable (around 3.5%) and the fact that investors want to take advantage of the extension of
the Pinel law in Bordeaux until the end of 2022.
It should be noted, however, that if the development in super Pinel plans to reduce the tax reduction, the latter may not be revised downwards for high-performance energy-saving housing, i.e.... RE2020. A strategy aimed at reassuring investors and encouraging them to invest in new apartments in Bordeaux, the favorite city of many French people.
