Laforet Barometer: the French and Real Estate - Publisher's Magazine

Despite the difficult economic situation and rising interest rates, the French still see real estate as an interesting investment. These are the conclusions of the latest study by Laforêt Immobilier, conducted jointly with the OpinionWay Institute, on the attitude of the French towards real estate. Let's take a look at the highlights.

The study was conducted on a sample of 1,015 people representing the French population over the age of 18 from September 6 to 7 this year. The purpose of the study was to identify recent trends in the real estate market and French people's expectations of real estate. According to this study, the French are showing a new interest in real estate this season. Thanks to a slowdown in inflation over the summer, the real estate market appears to be recovering at the end of the third quarter of 2023. While purchase intentions remained stable in the previous survey, they rose four points in September. Even 17% of French people said they intend to buy real estate in the next year. Thus, expectations that have been lowered in recent months are diminishing as 7% of those surveyed say they have already started their real estate search and 5% said they have already purchased a property this year. Rising interest rates are no longer a hurdle. The French seem to accept the fact of credit terms. Although average rates are now approaching 4%, the level of mortgage rates is no longer as serious an obstacle as in recent months to the real estate intentions of the French. Given the ongoing inflation, it is quite difficult to predict its decline, and the French have a desire to realize their real estate projects, which become a priority before the economic situation. Thus, 33% of those surveyed say that the level of mortgage rates will have no impact on their intentions in this area, which represents an increase of 7% on the December 2022 survey.

The French are interested in rental investment. While more than half of the French own their homes, buying your own apartment is not the only way to invest in real estate.

The obstacles to rental investment. However, buying to rent faces the same hurdle as buying a primary residence: the difficulty of obtaining a mortgage loan. Nearly seven out of ten French people say that the current economic situation, such as the conditions of access to mortgage credit, the level of property tax or the level of interest rates, still discourage them from realizing rental investments. Another significant obstacle is that owning rental housing entails a number of management obligations that are an additional burden on the French. 64% of respondents say that restrictions such as rent regulation or energy renovation obligations discourage them from investing in rental housing. This is a great opportunity for real estate professionals, as 53% of respondents say they would feel more confident investing in rental housing if they could trust an agency to manage their property.