Why does the real estate market in France continue to grow even after a pandemic?

Real estate market statistics in France

Over the past 10-15 years in France, there has been a steady rise in housing prices, which even the pandemic could not significantly delay. It is noteworthy that over the past year, interest in real estate has only increased, increasing by 13%, which caused the attention of specialists. Real estate expert Togrul Aliyev discussed with the journalist in his analysis of the peculiarities of this sector.

Housing prices by region

Prices per square meter depend significantly on location. For example, in Paris, prices can start from€12,000Whereas in Nice it ranges from€6,000. One important factor is the government's support for buyers, which has also contributed to the trend of steadily rising housing prices over the past 20 years. At the moment, France ranks among the leading European countries in terms of real estate prices. Even locals emphasize the high cost of living in their cities.

Average housing prices by region

• In the capital new buildings of average price category cost about€12,000per square meter.
• Neighborhoods located 7-8 kilometers from the Eiffel Tower have a price of approx.€6,000for a square.
• In Nice, the cost of primary housing ranges between€7,000and€9,000.
• For luxury properties, housing can cost considerably more, for example, in the center of Paris, the cost per square meter can start from€25,000.

Adapting the market to modern requirements

Despite the impact of the pandemic, the real estate market in France has successfully adapted to the current needs of buyers. It is now possible to buy a home online. The procedure is quite simple: if you are interested in an apartment, you can book it up to48 hours, and then contact a realtor for more details.

Conditions for booking accommodation

In case the buyer does not have time to complete all legal procedures within this period, he can make a small deposit - from€2000to€5000- to extend the reservation for two months. After that, all necessary documents can be signed remotely, which makes the purchase process as convenient as possible and does not require physical presence in France.

Government support for buyers

Among other things, the French state also helps buyers in the primary market. If we consider secondary housing, the transaction tax is approx.7-8%However, when buying new housing, this percentage is significantly lower — only2.5%.

Conclusion

Thanks to this, the French real estate market remains not only attractive but also accessible to new investors, which indicates its stable growth and development.

Reduced transaction tax

In recent years, some new residential complexes have implemented a zero transaction tax on apartments. This is only possible if the construction company covers all associated costs. As a result, buyers can not only avoid paying this tax but also receive an exemption from property tax for one to two years.

If you have your own income in France, for example, from a business, there is a possibility that your income tax could also be reduced to zero.

Real estate in France

When it comes to the real estate sector, major cities in France offer apartments at prices that may seem high; however, the constant demand for these properties indicates that such rates are quite justified. Research shows that in 2021, the demand for apartments increased by 12%, while the demand for houses rose by almost 20%.

Many potential buyers are considering the option of investing in apartments for subsequent rental, which can indeed become a profitable investment with a yield of about 4-5% per year. In some cases, if certain conditions are met, it is even possible to achieve 6-7% per annum. However, it is important to keep in mind the specific aspects related to the purchase of apartments.

Purchase of apartments

For example, when buying an apartment, it is important to consider that registration in it is not possible. In reality, the buyer does not receive a physical space, but only the right to use a certain part of it. This is similar to purchasing a room in a hotel or boarding house, and this arrangement has its pros and cons.

It is important to note that when purchasing both apartments and flats for rental, there is no need to search for tenants yourself. We have partners among construction companies who are ready to take on the management of the properties and help owners find tenants, ensuring a stable income.

Guarantees for the completion of construction projects

Now it's time to discuss the guarantees for the completion of construction projects. Government authorities pay a lot of attention to monitoring construction companies, which creates certain guarantees for buyers.

• For example, before putting a project up for sale, the developer is required to obtain a bank guarantee.
• It's a kind of insurance against potential problems during construction.
• If it happens that the developer goes bankrupt or faces other difficulties, insurance will ensure the completion of construction and cover all necessary costs.

In such situations, the bank usually hands the project over to another developer, which allows the work to continue without interruption.

Financial security

In addition, all financial transactions at the time of the deal go through a notary, and the developer does not receive money directly from the buyer. This system adds another layer of protection for real investors, significantly enhancing the safety and comfort of the real estate purchasing process.

All these measures ultimately instill confidence in the buyer that their rights and funds are under reliable control.

Mandatory insurance for builders

In addition to the aforementioned insurance coverage, there are several other mandatory insurance policies for builders. First and foremost, it is important to highlight the insurance that covers all aspects of the building for a period of 10 years, providing protection against various damages. For example, in the event of leaks in the roof or other issues, the insurance company assumes full responsibility and is ready to reimburse the costs of addressing the identified deficiencies.

It is also worth paying attention to energy-saving guarantees: modern buildings in France consume eight times less energy compared to the figures from 2012.

Conclusion

In conclusion, it can be said that the real estate market in France, despite the fluctuating economic situation both in the country and globally, continues to demonstrate resilience and attractiveness. Over the past 10-15 years, we have seen a steady increase in housing prices, which continues to attract both local and international buyers. Adapting to new market demands, including the possibility of online purchases and favorable tax conditions, makes the process of acquiring real estate more convenient and accessible.

At the same time, the growing interest in apartment rentals creates additional investment opportunities. Potential income from4-7%Annual returns cannot help but attract those looking for reliable and profitable investments. It is important to note that there are specific nuances when it comes to apartments; however, the presence of professional management companies also minimizes risks for property owners.

State support

Moreover, government support for the real estate market in France, including a mechanism for bank guarantees for developers and the possibility of tax reductions for buyers, creates a solid foundation for future development. As practice shows, even the unexpected challenges of the pandemic could not significantly undermine the fundamentals of this dynamic market segment.

Why it is worth investing in French real estate:

• Stable growth in housing prices.
• High demand for rentals.
• Government benefits and tax concessions.
• A professional approach to property management.

Thus, France continues to be one of the most attractive places for real estate investment in Europe. An interesting mix of stable demand, high prices, and government support creates confidence that the market will remain in demand in the future. Those considering purchasing property should pay attention to this direction—it promises not only good investments but also comfortable living in one of the most beautiful corners of the world.