It is well known that the real estate sector is one of the pillars, along with tourism, of the Côte d’Azur economy. Whether it’s construction or buying and selling, including credit, the value chain put into circulation positively impacts employment as well. This is why, although the 2012 results were not satisfactory, the prospects for 2013 are just as promising, as the figures for the first quarter clearly show.
Weak growth, economy on the brink of recession, declining purchasing power, tightening of real estate taxes – all equally discouraging factors for the coming months. And this despite exceptionally low interest rates. Unfortunately, all these elements determine an increased and dangerous feeling of pessimism.
The entire sector’s activity is coming out very battered. It is a matter of avoiding an economic and social disaster for a set of professions that have previously demonstrated their essential contribution to growth and employment and their active support for the construction of social housing.
Comments from Frédéric PELOU, President of FNAIM Côte d’Azur*:
“In an always gloomy atmosphere, the first quarter of 2013 shows a decrease in resale volumes of about 15% compared to the first quarter of 2012, which was already hampered by the increased taxation of capital gains on real estate, which came into force on February 1, 2012.
The percentages of negotiation are down, and prices are slightly declining, although it is still too early to conclude a lasting trend.
That being said, the structural barriers to a decrease in real estate prices are so significant in the Alpes Maritimes that one could only expect an extremely slow adjustment, if any, and possibly very localized to certain products (mid-range secondary residences).
This “sailing by sight” is quite at odds with the enduring nature and “good management” of investments, which remain the values primarily associated with real estate. Often viewed, rightfully so, as the last refuge during generalized crises of confidence, it is crucial not to continue, through government measures, stripping it of its last attractions.
