Construction Projects In The Protected Sector - In The Context Of The New Law 1.508

The adoption of the Law n°1.508 of 2 August 2021 regarding the safeguard and reconstruction of premises for residential use, covered by the provisions of Law n° 1.235 of 28 December 2000, reveals new questions which real estate professionals should consider. These questions refer to real estate projects including one or many old building(s) and may have impact on the interest of such projects.

Before the adoption of this law, apart from the possible tax advantages, the purchaser of an old building subject to Law n°1.235 of 28 December 2000 relating to the rental conditions of certain premises for residential use built or completed before 1 September 1947, was freed from the constraints of Law n°1.235 simply because of the demolition operation (restricted choice of tenant, controlled rents, right to renewal of the tenant, etc.), thus taking the project out of the scope of the so-called "protected" sector.