According to the estimates announced on 27 June by the issuing bank, the Credit Foncier, the real estate market in the former is expected to save nearly 880.000 transactions this year, an increase of 4 % compared to 2016.
The real estate market in the former is expected to save nearly 880.000 transactions in 2017, an increase of 4% compared to the previous year, accompanied by a “higher differentiated prices”, was reported, on June 27, 2017, the Credit Foncier in a press release.
“On a background of credit interest rate still very low and public schemes of support to the purchase such as the PTZ and Pinel in particular, the boom in the housing market continues”, continues the bank, a subsidiary of the BPCE group.
Bruno Deletré, chief executive officer of Crédit Foncier, reminds us that, in three years, from 2014 to 2017, the increase in transactions would be 27%, with the increase “differentiated” price. Thus, over the period, for an old apartment of three standard parts, the increase would be in the range “of between 4% and 8% in large cities such as Paris, Lille, Lyon, Bordeaux and Toulouse”, he said in the same press release.
The course of acquisition of the principal residence is “significantly improved” in three years
However, this increase may exceed 8% in some cities of lesser size, such as Reims, Besançon, Tours and Le Mans”. “They have a catch-up phenomenon after years of lower activity.” After the Credit Foncier, the route of acquisition of the principal residence is “significantly improved” in three years, since the average period of search for a household, now is 4.4 months compared to 7 months in 2014. In addition, more than two-thirds of households (71%) wishing to become owners to sign a sale agreement within 12 months, compared to 53% in 2014, adds the establishment.
In this context, the volume of housing loans granted by banking institutions in France are expected to approach 170 billion euros this year, up from 157 billion in 2016 (+8%). The rise would be 42% over three years, from 2014 to 2017.
According to the same study, 80% of real estate professionals say they are optimistic about the future of the housing market, against 35% at the beginning of 2015. Finally, on the market of the nine, the Land bank reiterates its forecast of a growth of 6 per cent of construction this year.