What about the real estate market in 2012? Jacques Agid, president of GIE Orpi Côte d’Azur (the leading real estate network in France with 72 agencies on the Côte d’Azur and a 6% increase in sales in 2011 compared to 2010) wants to reassure: “For 2012, the market should remain stable, and prices should not decrease. The only question is whether prices will rise or stagnate.”
To continue and conclude: “The return of foreign clients should be confirmed and amplified in 2012. The Côte d’Azur remains a safe investment, a dream location for many foreigners. For example, the Russian clientele seems to be diversifying, with their middle class showing a keen interest in investing here.”
After a decade that will remain in memory, marked by a combination of strong demand and a rapid increase in prices, the near future will be characterized by moderation, even concern.
Several indicators tend to turn red:
– The abolition of the PTZ+ in the old market* will create difficulties for first-time buyers as this aid improved their borrowing capacity.
– The reform of capital gains with a readjustment of overvalued prices.
– The potential increase in credit rates.
But despite this, nothing suggests a strong recession.
Indeed, 39% of French people consider real estate as a safe haven value.
This trend is confirmed by a study conducted for Orpi by Edhec Business School:
– Among tenants with a real estate project in the next 6 months, 1 in 4 wants to buy a property.
– Among owners with a purchase project in the next 6 months: 75% of them have a project for rental investment, 12.5% are planning to buy a second home, and 12.5% for a primary residence purchase.
Moreover, for those with capital, where else would they place it other than real estate, given the opacity of financial investments?
