The OIH (Real Estate Habitat Observatory) presented the annual report on the real estate market, and in 2016, the figures show particularly satisfying results.
For new housing, the number of sales increased by 28% in one year, a result surpassing national-level growth. This level of activity (more than 4,100 homes) had not been seen since 2003!
The same observation applies to resales, which also experienced a significant resurgence in activity (+13% in transactions in existing properties in one year).
In this context, prices have nevertheless remained relatively stable, at €5,226 per square meter for new properties, and €3,889 per square meter for resales.
The reasons for this upturn are well-known: exceptionally low loan rates and incentive schemes (Pinel for investors in new properties, and zero-interest loans (PTZ)) have largely contributed to this dynamic. It is also true that real estate is considered a safe haven in an uncertain economic context.
However, it is important to put these good results into perspective. The imbalance between supply and demand is such that it can only evolve positively through significant and continuous efforts to produce new housing, particularly in the intermediate category.
Moreover, the slight increase in interest rates and the uncertainty generated by the electoral context could have an impact on the level of activity.
