Faced with the end of the Pinel scheme and the reconfiguration of the residential market, intermediate rental housing (LLI) is benefiting from renewed regulatory and fiscal momentum. But behind the apparent attractiveness of the scheme, a fundamental question remains: what is the value of a real estate asset that demonstrates neither its environmental performance nor its technical sustainability? ARKORIS offers a practical analysis for developers, investors, and planners.
1. LLI in 2025: product return, model exit
The disappearance of the Pinel scheme creates a void. Intermediate rental housing (LLI), relaunched by the State through targeted tax measures (10% VAT, property tax credit, extension to family SCIs, etc.), is emerging as a transitional solution.
But in reality, the LLI is not a unified system:
- It falls under neither social housing nor the free market
- It is based on capped rents, but without any obligation for certification
- It attracts new operators (private developers, heritage real estate companies), but historical social landlords are gradually withdrawing due to a lack of a clear economic framework.
The result is ambiguity: an attractive tax product, but without any guarantee of structural value.
2. Is an asset sustainable if it is neither demonstrated nor certified?
In the majority of LLI transactions analyzed by ARKORIS over the past two years, we observe the same characteristics:
- Clear financial objectives (profitability, controlled cost per m², limited carrying costs);
- Partial efforts on thermal performance (RE2020, sometimes Effinergie);
- Little or no acoustic, fluidic or biodiversity strategy;
- No formalized ESG trajectory, particularly in the operational phase.
📌 However, an asset not aligned with long-term environmental trajectories will lose value — not necessarily at purchase, but at resale, refinancing, or in mixed tenders.
3. Three operational risks for developers
❶ Delayed regulatory obsolescence
The thresholds are changing: what is compliant in 2025 will not necessarily be compliant in 2030. Especially if the territories tighten their specifications.
❷ Incompatibility with the requirements of responsible investors
Real estate companies and insurers are incorporating sustainability criteria (biodiversity, low carbon, performance of use). A project that cannot be traced will be outside the scope.
❸ The impossibility of claiming an environmental commitment without proof
A project without independent audit, without certification, without data, will not be able to claim any extra-financial valuation leverage.
4. What ARKORIS offers: engineering, structure, demonstration
ARKORIS doesn't sell a label. We don't make a promise. We organize a structured response, integrating three operational levels:
🔹 ARKEMEP
Technical design office – thermal, acoustic, fluids → Sizing, traceability, real environmental planning.
🔹 ARKENOR
Environmental project management assistance – NF Habitat HQE, BDM, air tightness testing, ecological engineering → Support for certifications, mastery of regulatory interfaces.
🔹 IRICE
Independent third-party certifier – Effinature and Biodiversity Performance Score standards → Verification, auditability, external recognition.
📌 It is the combination of these skills that makes a project credible, not a mention on a brochure.
5. What conditions are necessary to make LLI an asset of the future?
We have identified three simple levers for developers and property companies:
① Define a proof trajectory from the competition or PC phase
No sustainable strategy without indicators. No indicators without a method.
② Combining engineering and certification with a focus on efficiency, not additional costs
Certifying something that is already intelligently designed doesn't cost more. It simply adds value to it.
③ Structuring ESG communication based on audited elements
In an LLI project, marketing rhetoric is no longer sufficient. Investors and communities demand proof.
Conclusion
LLI (Leasehold Investment Loan) can become a cornerstone of sustainable housing. But only if it moves beyond purely fiscal considerations and adopts a logic of demonstrable value. At ARKORIS, we work with developers and landlords who want to ensure the long-term viability of their projects – not just compliance.
Are you developing a low-income housing project in a high-demand area or on public land? Our team can work with you to structure a measurable and recognized environmental roadmap. Contact us