Key Takeaways

• Citizens lack awareness of essential public tools for renovation (48% of respondents, for example, do not know their home’s DPE rating).
• The “green” property value gained from renovation is now among the top motivations.
• There is strong reluctance to take out loans—even at zero interest (Eco-PTZ)—to finance renovation work (e.g., co-owners generally prefer to fund renovation through collective service charges rather than individual loans).
• Co-owners respond more favorably when the investment is tied to the property rather than to the individual.

“The residential building sector holds massive potential for energy savings and greenhouse-gas reductions, making it a key area for achieving France’s carbon-neutrality goals,” explains Carine Sebi, coordinator of the Energy for Society Chair and co-author of the study. She adds: “Today, 5 million homes are considered energy sieves (source: Ministry for Ecological Transition), and the current pace of renovation is far from sufficient. With this research, we wanted to understand both the motivations and the barriers homeowners face when considering renovation in multi-owner buildings. The study also allowed us to test financing models—some not yet available—that could support co-owners in taking the decision to renovate.”

Low Awareness of Key Public Tools

• 48% of co-owners in the sample do not know their property’s DPE rating.
• 70% have never heard of the FAIRE advisory service—recently renamed France Rénov’, the national public service for home renovation.

Enhanced property value driven by energy efficiency now ranks among the most influential motivations for renovation, particularly for landlords. Lower energy bills and improved comfort also remain strong incentives.

Financing Models: Barriers and Points of Acceptance

• A strong reluctance to borrow, even at zero interest (Eco-PTZ)
• Co-owners generally prefer to fund renovation work through building service charges rather than via individual loans, even when the loan offers identical conditions (same duration and zero interest).
• Around 30% of respondents prefer to pay for renovation work in cash rather than through a mortgage or collective charges. This reflects a strong aversion to debt, which becomes even more pronounced when loan durations increase.

“Contrary to what we expected, extending loan durations—for example, to 15 years—does not facilitate investment. Quite the opposite. We see a preference for shorter-term loans: 60% of respondents would choose a loan lasting 5 to 10 years, compared with only 14% who would opt for loans of 20–30 years. Economically, this is counterintuitive: spreading payments over a longer period reduces monthly repayments and should, in theory, encourage adoption,” explains Carine Sebi.

Co-Owners Prefer Investments Tied to the Property, Not the Individual

Co-owners are more willing to undertake renovation if, in the event of a property sale, the repayment of the renovation investment is automatically transferred to the next buyer. This preference for property-linked financing is particularly strong among owner-occupiers and landlords.

“These findings show that co-owners are more likely to commit to renovation if repayments are integrated into building service charges or automatically transferred to the next buyer in case of a sale. They also underline the value of offering financing alternatives equivalent to bank loans, but without requiring individuals to personally commit to bank debt—something that appears to be a major barrier in the context of renovation in multi-owner buildings,” concludes Carine Sebi.

This study was conducted by Carine Sebi, Marie-Charlotte Guetlein, Valeria Fanghella, and Joachim Schleich, researchers at Grenoble Ecole de Management and the Energy for Society Chair.
It was carried out in June 2021 with a nationwide sample of 1,268 owner-occupiers and landlords across mainland France.

About the Energy for Society Chair

The mission of the Energy for Society Chair is to examine the impact of new energy services that combine business attractiveness with strong citizen support. Its work focuses on three research pillars: collaboration among companies to co-create innovative energy services, corporate strategies for sustainable innovation, and the adaptation of energy services to evolving consumer expectations.