Investing in real estate is still popular among the French.
Investment in rental property is facing serious challenges in France, and the outlook for the coming months does not look brighter. According to the draft federal budget for 2024, currently being considered by parliamentarians, only older housing will receive state support. It's about premiums for energy retrofits and a revised zero-interest rate program. The whole thing is not encouraging enough, especially considering that everyone involved in the construction sector, from financing to promotion, will be affected.
The crisis facing the rental real estate market is multifaceted. First, trade has declined due to the effects of the pandemic. After difficulties with the delivery of raw materials, shortages and postponements, construction had to be completed, but the order books were empty. Second, households' savings over the past three years have not been shrinking in favor of real estate. Or almost no reduction to cover the possible need for your own deposit when taking out a loan, if possible. Finally, a bill aimed at stopping artificial land alteration raises concerns about a dramatic reduction in available acreage. In fact, it is a blind law because once the earth's potential is exceeded, it cannot be used. Now that we so often talk about "ugly France" with its commercial areas in metal structures and huge parking lots, all urban planning policies should not be restricted. Some refinements should be introduced, drawing, for example, on the experience of the regions.
The central importance of property
The question can be asked, then, how do we solve the problems of student housing, the need for housing for the elderly, urban real estate without automobile travel, if we focus only on older housing? Will our country abandon this central property value that is so valued by our fellow citizens?
26 October
9
The rental property is nevertheless valued by the French and has a good reputation. In fact, according to the latest survey conducted by Louis Harris Interactive for Maslow on Oct. 10, 77% of respondents think it's a good way to invest their money. And in the same proportion to generate additional income.
The affordability of such investments is widely debated in practical terms by consumers who find it difficult to find, finance and manage real estate. In addition, a third of them even believe that "rental properties are more difficult to realize than buying a primary residence." This is a real challenge that CNCEF Immobilier intends to meet. In the current period of transition and profound changes in the market, the general public should be able to rely on and be accompanied by real estate investment professionals with knowledge, qualifications, experience and following advice. And also to popularize the real estate investment advisory profession.
The issue of location
Besides the conjuncture and perceived difficulty of investing in rental real estate, the French have a fairly good idea of the location of the property in which they want to invest. One-third prefer the center of a large city or medium-sized city, taking into account mobility and location issues. Finally, climate issues are influencing the thoughts of investors. The energy criteria for housing currently on the market discourages them from investing in other properties, especially new housing. Thus, rental real estate has serious challenges that the state must take into account. This is important for the dynamics of a key sector of the French economy and, in general, for a value chain that is suffering unnecessarily.
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26 October
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