More than a month after the gradual deconfinement, the French have not given up on their real estate project despite the threat of an economic crisis. Decoding of this phenomenon.
Stone: safe haven? It seems that the French still want to invest in real estate despite the alert of an upcoming economic crisis according to the macroeconomic projections of the Banque de France. This Wednesday morning, Élodie Frémont notary and spokesperson for the Chamber of Notaries of Paris confirms the restart of the sector. “There was the resumption of real estate projects left aside during the crisis: the stone is the refuge, it reassures”she assures the microphone of France Bleu Paris.
According to her, the Ile-de-France residents seem to be concretizing their plan to buy and sell even if it has visibly evolved under the influence of sanitary confinement and its effects. “It is certain that in the outer suburbs there is a resurgence of activity, even very great activity.assures Élodie Frémont. We are going green even if it means having distances, but I believe that teleworking is good and promotes the small house and the garden.“She affirms that the Parisian market is not to be outdone because of its economic attractiveness and evokes in particular the departure of certain Parisians to the provinces without giving more details.
Europhie deconfinement
Statements that confirm the market trend studies carried out during confinement and at the start of deconfinement. The Real Estate Moral Observatory had already measured that a majority of future buyers wanted to continue their project even before knowing the date of deconfinement. Moreover, many real estate professionals had also noticed that buyers were looking for more large spaces, gardens and terraces, even if it meant moving away from urban centres. However, it seems to be short-lived with the current rise in rates.
“The real estate market is in a catch-up euphoriaanalyzes a spokesperson for Seloger. We are dealing with all the projects that were on stand-by because of the health crisis. We will have to wait for the start of the school year to see if real estate has done well and especially if first-time buyers are still entering the market.“According to him, the decrease in the number of new owners could ‘seize up the machine’ because there would be less work, construction or resale. For him, as well as a majority of buyers/sellers, the fall in the price of real estate should come when the effects of the economic crisis are more visible and it will depend on the ease of taking out a bank loan. However he doubts a drop in price in Paris. “This is no longer a market for first-time buyers at 11,000 €/m²he points out. It is more a wealthy clientele and foreign investors who in times of stock market uncertainty put their money in stone.“
So far the real estate market is doing well. After a record year in 2019 with more than 1 million transactions, the Seloger spokesperson estimates that the year 2020 should approach 800,000 sales “about like in 2016 which was also a good year“. The stone even in times of crisis does indeed always seem to reassure, but at what cost?
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