Rising interest rates and new construction rules: problems in real estate

As part of World Habitat Day, a real estate exhibition took place in Perpignan. The exhibition took place in a gloomy atmosphere, mainly due to rising interest rates. The attendance of the real estate exhibition in Perpignan has decreased this year. The main reason for this is the crisis in the real estate sector and difficulties for borrowers in purchasing due to rising interest rates.

If six months ago the interest rate was around 2%, now it is about 5%. Guillaume Daminato, a real estate agent, notes: "We no longer have first-time buyers, and we are completely changing our category.

If buying a new home becomes challenging, visitors show interest in renewable energy sources for equipping their homes and saving energy with insulation materials like polyurethane. "In the event of a natural disaster, the advantage is that we won't have to change the insulation because it is impermeable," adds Jean Colombus, a commercial agent at Colombus habitat.

Another challenge when purchasing new housing is acquiring land plots, the regulations for which are becoming increasingly strict. "The government requires us to compact cities and no longer expand construction beyond their limits," concludes Guillaume Daminato. In the eastern departments of the Pyrenees, construction industry professionals predict a 20% decrease in building permits by 2024.