“Blocked,” “at a standstill,” “slowed down” … the return of the French real estate market is expected to be bleak according to ORPI, the largest agency network in France with 1,250 sales outlets. The figures presented by Jacques Agid, president of GIE Orpi Côte Azur, are thus an interesting and credible barometer.
But the figures tell a contradictory story: indeed, while the national volume of transactions has decreased by 10.5% (between the first and second quarter of 2014) and the sales time has surpassed the 100-day mark, prices are not decreasing; on the contrary, they are increasing (+0.5% for apartments and +2.7% for houses).
Positive surprise in Nice: between January and August, there is a recorded positive transaction rate of 5% (!!!) with a slightly falling price per square meter (-0.6) to 3,800 euros.
Should we agree that the decline is halted?
Despite the context not generating investor frenzy in the old and expensive estate, sellers have become more realistic, but behaviors remain cautious despite exceptionally low credit rates around 2.5%, even if banks are reluctant to ease the concession.
The report highlights another sensitive point: the rental market, particularly targeted by the ALUR law before its modifications, which have yet to be formalized.
While waiting for the economic situation to boost demand, ORPI presents some short-term solutions to unlock the market, which can be summarized by revising housing taxation and encouraging private rental investment by creating a real status for private landlords.
These proposals will be presented to the National Council for Real Estate Transactions and Management (CNTGI), which brings together real estate professionals and consumers, before being submitted to the public authorities.
