Energy-Efficiency Renovations in Condominiums: A Reality Far From What Is Needed

Given that energy-efficiency renovations in condominiums are emerging as a major challenge in the fight against energy poverty, PrimesEnergie.fr commissioned the OpinionWay institute to gain a better understanding of the situation facing condominium owners and their level of preparedness regarding current and upcoming regulations on this issue.

In the midst of a summer packed with sporting events, a Senate investigative committee’s report on “the impoverishment of condominium complexes” revealed an alarming situation.  Describing “a widespread and pervasive phenomenon affecting both the suburbs of major cities and the historic downtowns of small towns,” this report went largely unnoticed. Yet, multi-unit housing accounts for 44% of all housing in France, and 35% of these units have an energy performance rating of Class F or G—meaning they are energy-inefficient.
 

Key findings
• More than one in two condominiums subject to the requirement for a Multi-Year Maintenance Plan (PPT), which took effect on January 1, 2024, has not yet complied.
• More than one in two condominium complexes subject to the Energy Performance Certificate (DPE) requirement by January 1, 2025, has not yet obtained it.
• Nearly one in two condominium owner notes a lack of involvement by their property manager in the energy-efficient renovation of their building.
• More than one in two condominium owner would support postponing the ban on renting out energy-inefficient buildings.
• Three-quarters of co-owners consider the out-of-pocket costs for energy-efficiency renovation work to be too high.
• Less than one-third of co-owners have noticed an acceleration in planned renovation work related to the phased ban on renting out energy-inefficient buildings.
 

According to Nicolas Moulin, founder of PrimesEnergie.fr—the leading financier of energy-efficiency renovations for homeowners through Energy Performance Certificates (CEEs), which has facilitated more than one billion euros worth of renovation projects—: “This study shows that condominiums have been the blind spot of energy-efficient renovation for far too long. Their condition is deteriorating and requires large-scale measures to combat their aging and the energy insecurity they cause. Contrary to popular belief, condominium owners are in favor of improving their comfort, reducing their energy consumption, and maximizing the value of their property. Although condominiums have been required to establish a renovation fund since 2015, the contributions collected have not been sufficient, and it wasn’t until January 1, 2021, that the MaPrimeRénov’ subsidy program was introduced to bolster the financing mechanism for energy performance certificates (CEEs). “It is urgent to make up for lost time and to effectively and sustainably set in motion a virtuous cycle for everyone—owners and tenants alike: in the private housing stock alone, 1.3 million households living in condominiums are energy-vulnerable!”
 

PPT required as of January 1, 2024: More than half of all condominiums are not in compliance
Stemming from the 2021 Climate and Resilience Act, the law requires that a collective energy performance assessment (DPE) be conducted by January 1, 2025, in condominiums with more than 50 units, and by January 1, 2026, for smaller buildings. With three months to go before the first deadline, are condominium complexes ready? Far from it. According to statements from apartment owners, 57% of condominium complexes with more than 50 units have not yet completed a collective energy performance assessment, compared to 47% of complexes with fewer than 50 units, which are slightly further along in the process one year before their compliance deadline.
 

The trend is generally similar with regard to the PPT: although it has been mandatory since January 1, 2024, for condominiums that are more than 15 years old and have between 51 and 200 units, and as of January 1, 2025, for all others, 51% of respondents report that they have not carried it out or discussed it at General Meetings (52% of the condominium associations directly affected).
 

It is also worth noting that, while energy audits have not been mandatory for multi-unit residential buildings since January 1, 2017, 25% of condominium associations have conducted one and 14% have scheduled one to assess their building’s energy consumption.
How can these delays be explained, given that—as evidence of their proactive stance—52% of co-owners support mandatory energy-efficiency renovations for housing, including for owner-occupants?
 

Energy-Efficiency Renovations in Condominiums: Still Too Many Obstacles to Overcome
Lack of Information
Surprisingly, despite the mandatory nature of these requirements, a number of condominium owners are unaware of their obligations: 20% say they do not know what the PPT is, and 8% are unfamiliar with the collective DPE, while 11% are also unaware of the energy audit. More broadly, 64% of respondents lament the lack of knowledge about energy transition issues within their condominium. Furthermore, the lack of transparency regarding their building’s energy performance appears to be a barrier to carrying out renovations for 67% of co-owners. This obstacle is all the more significant given a certain tendency to overestimate the energy performance of one’s home: while one-third of condominiums are energy-inefficient, only 13% of condominium owners believe they live in one.
 

Lack of Support
Could the lack of involvement by their property manager on this issue—perceived by 46% of co-owners—explain the situation? In any case, the presence of a professional property manager does not seem to speed up communication or decision-making on this matter: 29% of co-ownerships with a property manager have initiated discussions regarding renovation work, compared to 36% of those without.
 

Lack of coordination
Another major issue is the difficulty co-owners have in mobilizing and agreeing on a renovation strategy. 73% of co-owners identify differing perspectives on the situation as one of the main obstacles to renovating their building, and 59% cite the lack of a project leader to rally the community—a driving role typically assigned to the co-owners’ association.
 

Lack of Funding
The crux of the matter remains, as always, the issue of funding for renovations: 77% of co-owners believe that the portion they must pay out of pocket is too high. Difficulties related to income disparities are also cited by 73% of respondents, and an equally large number believe that their renovation fund is insufficient.
 

As for government assistance programs, which are intended to facilitate the process, while they are viewed as an opportunity (69%) and sufficiently incentivizing (73%), they remain largely unknown to 71% of co-owners, and 69% highlight the difficulty of the associated administrative procedures. Furthermore, given the current context of a rising public deficit amid ongoing instability in support programs, 60% already anticipate that these programs will be phased out.
 

Ban on Renting Out Energy-Inefficient Properties: A Strong Measure, Limited Results
While they are not opposed to carrying out renovations—quite the contrary—the lack of any actual penalties may also explain the lack of enthusiasm for complying with regulatory requirements for energy-efficiency renovations in condominiums. Among the incentive measures, the phased ban on renting out energy-inefficient properties does not appear to be a sufficient incentive: since it took effect, energy-efficiency renovation projects have been discussed in only 31% of condominium complexes. Moreover, 60% of landlord-owners and 45% of owner-occupants would like to see this provision postponed.