The new “ABC” zoning was revised by the Ministerial Order of February 16, 2022 made pursuant to Article R.304-1 of the Construction and Housing Code.
It classifies territories according to the degree of tension of their local real estate market.
The A/B/C zoning characterises the tension of the housing market by dividing the territory into 5 zones, from the most tense (A bis) to the most relaxed (zone C).
The A/B/C zoning is based on statistical criteria related to territorial dynamics (demographic evolution, etc.), local market tension and rent and price levels.
Zoning A/B/C has multiple uses:
— Rental investment scheme for individuals: rent and resource ceilings for tenants.
— Device Rent affordable and rent better.
— Rental investment scheme for institutional investors: VAT rate reduced to 10 % in zones A and B1.
— Ready at Zero Rate (PTZ): resource ceilings, tranches, quotities and operating ceilings
— Social loan from Location-Accession (PSLA): resource, rent and price ceilings
— Tax on the high rents of small area dwellings in Area A.
— Mobilisation of public land
— etc..
More information at https://www.ecologie.gouv.fr/zonage-b-c
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