The traditional quarterly conference of FNAIM, one of the most important (if not the most important) networks of real estate agencies in France, reported a situation of recovery in this market, which is very sensitive to economic conditions and the specific legislation of this sector.
The Pinel Law and the PTZ scheme for first-time buyers have put the supply and demand ratio back on track.
The ALUR law, after revisions and corrections made to the initial Duflot version that had paralyzed professionals in this sector, is beginning to be absorbed and is less contested and… boycotted.
The market has taken into account some additional regulatory framework, which in some cases has brought order to a nebulous area where everyone was exploiting it.
Some speculative practices have been abandoned in favor of a more correct conception of medium- and long-term investment.
Increasing prices per square meter by 10% year on year allows easy gains but kills the market. Settling for 4/5% per year allows for a decent return and doesn’t kill the goose that lays the golden eggs.
Staying on the Cรดte d’Azur, the refrain is always the same: the attractiveness of a territory with an international signature and lack of land are both delight and burden.
In terms of prices, we have returned to a certain balance and stability: in Nice (year on year), the first quarter of 2016 presents an almost unchanged average around 4150/4200 euros per m2.
The situation does not vary much in the other demographic basins of the department where differences are measured in decimals or 1 or 2 percentage points.
Conclusion: the market law has resumed functioning after the Faste years of speculation and the gloomy years of crisis.
Real estate is a product that sells at the right price, otherwise you hold onto your property waiting not for a client but for a gullible buyer… a commodity becoming increasingly rare!
