Jeanbrun Initiative Struggles to Convince Investors

A Start Far Below Initial Ambitions

Jeanbrun had been introduced as one of the potential levers to boost private rental investment after the phasing out of Pinel. The industry had suggested a potential increase of approximately 50,000 additional housing units per year, or about 4,000 transactions per month.

A few months after its implementation, the volumes remain far from this goal. The 200 to 300 monthly sales recorded by the FPI indicate that investors have not yet widely adopted the new mechanism.

Several factors may contribute to this cautious approach. The scheme is less immediately understandable than Pinel; it is not based on a tax reduction calculated directly on the housing price, but on the depreciation of a portion of its value, which reduces taxable rental income. Its appeal varies significantly depending on the purchase price, rental income level, property financing, and the investor's tax situation.

Nexity Reports 300 Sales and Remains Confident

Nexity takes a more favorable view on the initial months of the initiative. During a press conference held at the end of September, the developer reported having sold around 300 housing units under Jeanbrun since its launch.

The group believes that commercialization required a learning phase, involving training for teams and partners, as well as adapting tools that allow buyers to assess the fiscal impact of the program.

Nexity also aims to demonstrate that Jeanbrun is not exclusively for high-tax households. The developer claims to have identified approximately 700 housing units that could suit first-time investors.

In some simulations presented by the group, the savings effort would remain below 300 euros per month for a taxpayer in the 11% marginal tax bracket. However, this amount depends on the program, financing, and assumptions made and cannot be generalized to all Jeanbrun investments.

Tax benefits alone do not make a good investment

For individuals, the main advantage of the scheme lies in the ability to fiscally amortize part of the property price. This allows the investor to reduce taxable rental income in addition to the traditionally deductible expenses. However, this tax benefit must be weighed against the constraints.

The property must be rented unfurnished for at least nine years, with rent and tenant income limits. Most importantly, profitability primarily depends on the property purchased. A high sale price, rent ceilings that are too low, or expensive financing can absorb much of the benefit provided by tax amortization. The treatment of resale must also be factored into the calculation: the depreciations made during ownership reduce the acquisition price used to determine the taxable capital gain.

The rise in borrowing rates, already in effect as of October, could be an additional obstacle if it persists. By increasing the cost of credit, it raises the savings effort required from investors and reduces, all else being equal, the economic gain provided by tax amortization.

The Real Test Will Be Scaling Up

The Jeanbrun is not necessarily a bad mechanism for investors. However, initial figures indicate that it has not yet sparked the massive resurgence in rental investment that the industry had hoped for. The contrast remains significant: a few hundred operations per month across the entire market, compared to the several thousand initially expected.

The question in the coming months will be less about whether certain programs can offer an attractive financial equation and more about whether enough investors can understand the mechanism and see its benefits in order for it to truly scale up.