Real estate market: French interest remains high despite interest rate hikes

Laforêt Immobilier, together with the OpinionWay Institute, has recently published its latest barometer on the French and real estate. This study was conducted between September 6 and September 7, 2023 and is based on a sample of 1,015 representative members of the French population aged 18 and over. The study highlights trends in the real estate market in France and offers an overview of French real estate aspirations.

Increased interest in buying real estate

The real estate market appears to be reviving at the end of the third quarter of 2023, despite a slowdown in inflation over the summer. Purchase intentions, which had been stable in previous measurements, increased by four points this month. Currently, 17% of French people plan to buy real estate in the coming year. Moreover, the anticipation observed last month is decreasing and more people are starting their real estate search. In fact, 7% have already started the process of purchasing real estate, which is 2 points more than in June. In addition, 5% of those surveyed said they had already purchased a property this year. A total of 22% of French people have already made a real estate purchase in 2023 or are planning to do so. The intentions of future potential buyers identified in June are strengthening. Especially 30% of young people under 35 years old declare their intention to buy a property in 2023, an increase of 5 points compared to June. Also 27% of parents show an increase of 8 points in their intention to buy real estate. Whereas mortgage rates are approaching the 4% level, they no longer seem to be such a significant obstacle to French real estate desires.

Interest in real estate for rent

Rental property is also attracting the attention of the French. A quarter of French people (25%) say they have already made rental investments, while 20% plan to do so in the near future. Overall, a third of French people are considering or have already made rental investments (33%). Interestingly, rental property is particularly popular among wealthier households, where 34% of French people with a monthly household income greater than or equal to €3,500 have already invested in rental property. However, even among French people with more modest incomes, whose monthly family income is less than €2,000, 21% have already invested in rental property. The attractiveness of rental investments is linked to their resilience in the face of economic turmoil, according to 51% of respondents. This opinion is shared even by 72% of those who have already invested in this area. The approach to the Olympic Games in Paris 2024 is also stimulating interest in real estate rental investments, especially in the areas where the Olympic venues will be located. In fact, 13% of French people say that this event is encouraging them to invest in rental real estate. This is particularly important for French people on more modest incomes, where 20% are considering entering into rental property management, compared to 12% of wealthier French people. However, two major obstacles are holding back the popularity of rental properties. First of all, current economic conditions, such as access to mortgage credit and the level of property tax, from the