Does the crisis change real estate?

real estateis no exception. The first consequence is felt at the level of transaction volume. If 2019 was a record year with a sales volume that exceeded one million for the first time, namely 1,059,000 units specifically, 2020 is likely to experience a decline of -20% to -25% to barely 900,000 sales. Adding to this is the increasing difficulty of lending by banks. It's not that rates have gone up, on the contrary, they are likely to remain stable for the rest of the year, but banking institutions no longer make loans with terms longer than 25 years, don't deviate from the 33% debt level and also tend to require a certain down payment. So, yes, the healthcare crisis is turning the market upside downreal estatein all respects, but the interest of the French in real estate remains unchanged, and many of them still seek to realize their real estate projects.

The impact of the health crisis on the mainstream housing market

As might be expected, the isolation that accompanied the first quarantine was very difficult for many Frenchmen. The first cause of this discomfort was too small a dwelling, and then great dissatisfaction was caused by the lack of outside spaces. Indeed, what city dweller did not dream of a garden or a sunbath during those 56 days spent in quarantinehouses?

While for many the purpose of the purchase did not change before and after quarantine, many feel that their current housing is not adequate for quarantine living and therefore want to accelerate the process of changing homes.

Changing the criteria for selecting a primary residence

The most notable example of this change is the type of real estate that thelooking forbecause before the quarantine, 64% of the buyers.searchedhouseand after that, 81%. The French who wantbuyhouse, are looking for both external space and a larger internal area at the same time and for this they are willing to widen the scope of their search, the former criterion of proximity to work is no longer paramount with the introduction of remote working. Buyers now even at 25%, according to a study conducted by Se Loger portal, seek more peace and tranquility and would therefore prefer to target the province and small towns for living, provided of course that internet access is good.

Secondary housing market

In the secondary housing market, it also seems that the quarantine experience has spurred potential buyers into new desires. Secondary housing is becoming a necessity for executives. For a long time, secondary housing was seen as a burden due to maintenance costs, so young executives preferred to vacation in faraway places. However, the sanitary situation, the uncertainty of being able to travel abroad, and the threat of new quarantines have revived the desire for secondary housing.

What's happened to the rental housing market since the start of the recession?

Despite the economic situation and growing uncertainties, rental real estate investing is now, more than ever, a safe haven.Francehas overcome several crises in its history, and real estate investment has managed to remain a safe haven despite the economic turmoil. As in 2008, many buyers believe that in this period of doubt about returns, investing in real estate is still the best way to put money away and secure their savings by taking advantage of the leverage effect of low interest rates.