Real estate : records amid concerns

BALANCE SHEET AND PROSPECTS. Sales to explode in the former since June 2016, an increase in housing, construction sites, reservations in VEFA and also sales of single-family houses… The real estate market has rarely been so well worn that in 2017. A good health which does not prevent the professionals of the FNAIM to worry about, particularly in relation to future measures taken by the government Macron…
900.000 sales between June 2016 and June 2017, or + 9.9% in one year, the record of the transactions carried out in the area of the former is beaten. It is this that has revealed the French National real estate Federation (FNAIM), during a press conference held on July 5, 2017, in Paris. As a reminder, the sales were already increased from 797.000 in 2015 845.000 in 2016, two years of continued increases. FNAIM says that “more than two-thirds of the departments show an increase in the number of sales greater than 10%”.


However, if record there is, it is to put things in perspective : “the figures are to scale in terms of the number of housing units built. Since 2000, the park has increased 20% while sales only rose 13%”, indicates Jean-François Buet, president of FNAIM. And to add : “to equal the maximum rotation observed in the year of the millennium, it would have been necessary to arrive at 95,000 transactions.”

Records also on the side of the price of the goods

That says volumes to increase, says generally increase in price. A cause and effect relationship, which is verified, since as revealed by the FNAIM, the increase “is confirmed and even amplified to the level of rates of the goods. Besides, it also touches on the houses than apartments. Their prices are increasing respectively of 3.4% and 4.4%. Not surprisingly, the increase affects more properties located in major cities or in other words in areas strained. The city of Bordeaux is way out in the lead with a + 7.1 per cent, on the prices of apartments, a figure that confirms his attraction to the French. It is closely followed by Paris (+5.9 per cent), Lyon (+5,1%), Marseille (+4.6%) and Lille. The situation, however, is not the same in the small and medium-sized cities. Some of them actually suffering declines. This is particularly the case in le Havre (-2,4%) or Saint-Etienne (down 1.7%).


This price increase is an inevitable impact on the purchasing power of the French. In the first half of 2017, they lose m2 : – for 1.7. The FNAIM, however, clarifies that they are still the winners over one year : + 1.5 m2.

The new-build sector confirms its dynamic

For its part, the new-build sector is confirming its dynamism with + 14.6% in housing starts in a year, +22.6% of VEFA and + 18% of sales of detached homes in sector diffuse.


At the end, growth is everywhere : in the old and the new. A good general health, which can be explained in large part by the level of interest rates, still historically low, despite a slight recent upswing. Not only that, but the dynamics is also driven by the schemes of state aid, including the PTZ and Pinel, who, according to the FNAIM, have proven their usefulness. In 2016, she recalls, as well as the number of PTZ has doubled : 117,000 in operations have benefited from it. Figures that encourage professionals to claim the extension of these devices, which expire at the end of the year. “It is necessary to extend them over a longer time period to provide the visibility and maintain the trust and confidence”, argues Bruno Deletré, chief executive officer of Crédit Foncier, the historic partner of the FNAIM. An appeal that is being launched so that a certain vagueness still surrounds the housing policy initiated by the new government Macron. During his general policy speech to the national Assembly, on July 4, Edouard Philippe has left a lingering doubt as to their maintenance, suggesting a gap between the level of expenditure that they represent for the State, effectiveness and efficiency in concrete.


In addition to this issue of the aids, the rent regulation also raises questions : will it be maintained ? Extended ? Stopped ? Quid also the exemption of the property tax ? It said rescheduled… yes, but when ? So many questions still without answers.


To a law “Housing, mobility, housing”, presented at the fall ?


The only thing that has recently been confirmed by the government is the drafting of a law ” Housing, mobility, housing, the draft of which would be presented in the fall. To facilitate mobility within the existing housing stock, the text could be put in place a short term lease, a concept that leaves, once again, the professionals perplexed : “What will happen to the bond, the deposit, how will t-on this lease ?”, questions to Jean-François Buet, president of FNAIM worrying, in particular, to the rights of donors.


The same law could help to simplify the procedures of construction of new housing. It will affect the pools of employment in the most dynamic. “Procedures for a building permit will be accelerated, the use of abusive punished”, said the Prime minister during his general policy speech to the national Assembly. “The need, particularly in the taut areas, building permits will be transferred from the municipalities to inter-municipal associations to ensure that the decisions to build are taken to the scale of the basins of life”, he also said.


Here you can find all the announcements made by the Prime Minister to the housing.

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