The real estate crisis doesn't bypass Loire-Atlantique.

On October 18, 2023 at 14:57 local time in Nantes, France, house prices started to decline, especially in the Nantes agglomeration. However, the number of transactions fell strongly in the Loire-Atlantique department. In Loire-Atlantique, sales have fallen strongly over the past year: -15%, noted in the second quarter of 2023 in the department. This is mainly due to buyers' difficulties in obtaining credit due to rising interest rates.

However, according to Guillaume Pichelin, director of Pichelin real estate agencies in Nantes and Angers, this is above all a natural and necessary redistribution, especially after the price increases in recent years. He also noted that to succeed in this market, it is necessary to focus on quality of service, seller and buyer support, and employee training.

In terms of new housing, Pichelen noted that the reduction in transactions is around 70% both in Loire-Atlantique and nationally. Over the past few months, there has been a slowdown in transactions due to rising interest rates, the energy crisis and the military conflict in Ukraine.

In addition, the rental market is also experiencing difficulties. There is a reduction in supply due to inflation and the real estate crisis.

The housing sector has also become a cause for concern. According to SRU law, new housing developments must contain between 25% and 35% social housing. The reduction in construction results in less affordable social housing, which could be a problem in the future given the attractiveness of the region. In addition, there are restrictions on urban expansion due to new environmental regulations, making it difficult to provide housing for the growing population.

In general, all these problems require simplification of legal regulations to facilitate access to housing and address the shortage. This will be a major challenge for municipalities in the future.