A deteriorating economic situation, soaring taxes, high prices, and a highly contested rental reform project… 2013 was a difficult year for real estate, fortunately supported by historically low interest rates.
2014 begins under the same auspices with, in addition, a fear of an imminent rise in mortgage rates.
“At the start of this year, many uncertainties weigh on the residential real estate market, in all areas: economic (growth, unemployment), psychological (household morale, confidence), financial (interest rates, solvency of property buyers), legal (ALUR law), fiscal (capital gains, registration duties), etc. The CAFPI study confirms it: the risk of rising rates, the increase in notary fees, and the shortage of new housing construction lead to predicting a significant decline in credit production in 2014,” comments Fréderic Pelou, president of FNAIM Côte d’Azur.
The decline in activity in the old residential real estate market in the Alpes-Maritimes continued in 2013 (down 9.6%), albeit at a slower pace than in 2012 (15%).
FNAIM estimates the number of transactions of old housing completed in France in 2013 at 668,000 compared to 704,000 sales in 2012, a decrease of 5.1% compared to 2012.
In the Alpes-Maritimes, 16,304 sales were recorded in 2013, a decrease of 9.6% compared to 2012.
Paradoxically, the deterioration in the number of transactions does not result in a significant drop in prices.
Over the course of a rolling year in the Alpes-Maritimes, the slow decline in prices is confirmed:
Nice -3.51% – Cannes -1.84% – Antibes -2.08% – Menton +0.56%
Directly correlated with the standard of living of tenants in their housing, private sector rents have moderated: a decrease of 1.2% on average in the Alpes-Maritimes, with an average price of 15.58€/m²
Rental yields: Most are between 5% and 6%, placing residential rental real estate high on the current investment ranking. (4.02%/year in the 06).
