Posted Sep 29, 2022, 3:42 PM
Why have real estate prices skyrocketed in recent years? Can the stone resist the rise in rates and the announced economic crisis? Is it time to sell or to buy? So many crucial questions that the French are asking themselves, and in particular our subscribers who have sent us their questions.
Stone is the foundation of the heritage of our fellow citizens. First, because the vast majority of them want to become owners of their main residence. Then because real estate allows you to obtain regular income. An invaluable quality as resources are noticeably reduced upon retirement.
Paradigm shift
Real estate prices have exploded in recent years. The continued decline in interest rates was the strongest supporting factor for this rise. It has largely contributed to increasing the purchasing power of buyers despite the price dynamics.
But the party is over. Money is no longer free. The conditions for allocating loans have tightened and in one year, rates have increased significantly. Admittedly, faced with inflation of around 6%, it is still very interesting to borrow at 2% over 20 years.
You still need to have the financial capacity to repay your monthly payments, while prices have not yet gone down.
Correction expected
If it is unlikely that the stone can remain insensitive to these rate hike movements, remains to be seen what will be the extent of the reaction of the real estate market. Readjustment, correction, crash? Professionals seem quite calm for the moment and there are many supporting factors. But no hypothesis is for the moment excluded.
For investors, decisions are difficult to make. A correction would make it possible to achieve good business and already, some are embarking on acquisitions, in particular thermal strainers. The new DPE requirements for renting accommodation are encouraging many owners to put properties back on the market at attractive prices.
But investors are taking risks while the taxation of real estate seems more and more dissuasive and the constraints and costs grip landlords.
In this webinar (1), we provide answers to many questions from our subscribers. You can continue to send us your questions by clicking on this link which also allows you to register .
(1) These webinars are reserved for Les Echos Entreprises subscribers.
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