Real estate prices are coming down: a promising start to construction.

For Christophe Dupra, CEO of Qlower, falling real estate prices should not be seen only as a threat, but also as an investment opportunity for thoughtful real estate purchases.

© Qlower Christophe Dupra, CEO of Qlower

1 - The impact of DPE and size of properties on real estate price declines

Real estate, the cornerstone of the French economy for decades, is currently undergoing significant changes. Changes in the real estate market are a major challenge for investors, owners and those looking to become owners. Consider recent changes in the real estate market, a source of new opportunities for both investors and''first-time buyers.

First of all, it is worth noting that the fall in real estate prices is not uniform. Some types of properties and certain characteristics are more sensitive to price changes than others. Among the factors affecting price falls, the Diagnostic Passport for Energy Efficiency (DPE) and the area of the properties on offer are of particular importance. The DPE, which assesses the energy efficiency of a home, although criticized, has become a selection criterion for many buyers and investors. Properties with a low energy efficiency rating are sold at a discount, but the size of the discount depends on the location and type of property. In general, houses are more sensitive to DPE scores than apartments, and tense neighborhoods mitigate the negative impact of low''DPE valuations (especially in the Ile-de-France region). The upcoming DPE overhaul planned by Bruno Le Maire will soon bring about changes and it would be dangerous to make a purchase or investment decision based on this criterion alone. It also leads to a growing caution among owners before undertaking energy overhauls.

Another important aspect is the size of properties. Housing with a large area, although it retains the advantages of a favorable DPE valuation, is gradually losing demand following socio-demographic trends in France (single parents, long studies, etc.).

2 - Smart investments in a growing market

Note that from an investor's perspective, declining real estate prices do not necessarily mean a loss of opportunity. On the contrary, it opens up new prospects for those who want to live or invest in real estate. While the risks associated with renting are present, current demand for housing is at a historic peak and quality homes are renting in just a few days. Regardless of whether to live'Whether renting or investing, the demand to rent or buy is concentrated in the same geographic areas. City centers, areas with good transportation accessibility and areas close to workplaces or universities are reliable anchor points for buyers. Simplifying the one-stop shop for energy repair assistance allows for the quiet exploration of subsidies for tenants and landlords in both private homes and multifamily buildings.

In conclusion, declining real estate prices should not only be viewed as a threat, but also as an investment opportunity with a well-considered real estate purchase. The combination of favorable DPE and more compact or converted properties adapted to modern''sociology, can bring interesting returns, while rental demand is rising almost everywhere in France. Now is the time for investors and buyers to adapt to the new real estate market and take advantage of new opportunities in this changing market.

Source: Qlower