The real estate market on the French Riviera remains uncertain
The indicators are still in the red for the Riviera real estate market, and the future remains unclear. This is the diagnosis from Frédéric Pelou, president of FNAIM 06, an association that brings together approximately 700 offices in the department.
A sluggish market with transactions down 15% in 2013 compared to 2012, following a previous 15% drop in 2012 compared to 2011. Prices are still skyrocketing, but there’s especially a sharp increase in property turnover times, which are around four months: it’s difficult to be optimistic!
Is there a glimmer of hope? The announcement by the President of the Republic to revert to a tax exemption on real estate capital gains after 22 years instead of the current 30 years.
“But when will this take effect?” asks Frédéric Pelou. Today, there is a wait-and-see attitude, but delaying this measure to 2014 would certainly block transactions in the second half of the year. Professionals hope for an effective date as soon as next September to restore confidence among potential sellers and buyers.
“What’s crucial, first and foremost, is to regain stability and a fiscal vision without mid-course changes, at least throughout the five-year term. We can’t work effectively with the sword of Damocles hanging over our heads from one change to another,” added Frédéric Pelou.
Another point on which the local FNAIM president wanted to express his concern, even strong discontent, is the recently approved bill by the Council of Ministers currently under review by the National Assembly, concerning rental access, and especially the part regarding rent guarantees. Being a national law, there is no doubt that FNAIM will exert its influence to obtain the desired modifications.
Moreover, Pelou acknowledged that at this stage, there is a deliberate ambiguity maintained about the application methods, postponed to implementation decrees. No doubt that during its parliamentary journey, ambushes will be prevalent.
Meanwhile, between 10,000 and 15,000 homes in the department remain vacant!
But as we know well, we live in a democracy where interests take precedence over principles.
