Yesterday, FNAIM Côte d’Azur presented a report on the real estate market in 2018. The impacts of the ELAN law, the Denormandie tax system, and future perspectives were all scrutinized.
In 2018, real estate prices in France generally increased. However, on the Côte d’Azur, FNAIM notes a stabilization of prices. In Nice, the average price per square meter is €4,239, with a small decrease (-1.2%) compared to 2017. The sales volume dropped by 5% compared to 2017.
Forecasts for 2019
FNAIM Côte d’Azur does not anticipate a market slowdown or price increase in 2019. “The key indicator to monitor will be the mortgage loan rate, which is expected to rise slightly,” stated Cyril Messika and William Siksik, Presidents of FNAIM Côte d’Azur, to the press.
The National Grand Debate
The perspectives, according to them, could evolve in the coming months with the national grand debate. “The Government should not, in an effort to quell social discontent, spread stigmatizing or contradictory messages regarding private housing. In this regard, recent discussions about questioning the universal nature of the housing tax exemption or the increase in inheritance tax are not reassuring for property owners or potential buyers.”
The ELAN Law
Regarding the ELAN law, which came into effect on November 25, Cyril Messika and William Siksik view positively “the recognition and protection of the title of real estate agent for property managers and condominium managers (…) the creation of the mobility lease, the very limited changes regarding the sales of private housing, as well as the numerous technical measures established concerning co-ownership.”
The Denormandie Scheme
Regarding the Denormandie scheme, “from January 1, 2019, it is a tax reduction to encourage renovations in dilapidated housing and to combat the desertification of city centers.”
For the Alpes-Maritimes, this currently concerns Grasse and Vallauris.
