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Declining real estate prices: opportunities for construction

Declining real estate prices: opportunities for construction

Declining real estate prices: opportunities for construction
Declining real estate prices: opportunities for construction

Real estate, a cornerstone of the French economy for decades, is currently undergoing significant changes. Fluctuations in the real estate market are a major concern for investors, owners and those seeking to purchase their own homes. Let's take a look at recent changes in the real estate market that provide new immediate or future opportunities for investors and first-time buyers.

The impact of Energy Performance Diagnostics and property size on falling real estate prices.

First, it is important to note that real estate price declines are not uniform. Certain types of properties and certain characteristics are more''changes, and a purchase or investment decision based on this criterion alone would be dangerous. It also leads to increased caution by owners when undertaking energy renovations.

The floor area of properties is another important aspect. Large area housing, despite a more favorable DPE, is gradually seeing a decrease in demand, corresponding to socio-demographic changes among the French (monopolistic families, long studies, etc.). Buyers, exposed to rising prices and the tightening of mortgages, are opting for smaller properties due to constraints. Investors are taking this trend into account by looking for lower-priced opportunities for larger properties purchased on''favorable terms. These properties of over 100 square meters are often converted to joint tenancy or co-housing, thereby maintaining optimal returns in line with acquisition costs.

Note that a decline in real estate prices does not necessarily mean a loss of opportunities.

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On the contrary, it opens up new prospects for those who want to invest in real estate for living or building a rental housing portfolio. Although it exists to a limited extent, rising rents combined with declining acquisition costs mechanically improve returns on rental housing. Of course, there are risks associated with rental housing, but current demand for housing has reached a historic peak, and quality''housing is rented for just a few days. For both living and investing, the same geographic areas are prime locations for renting or buying. City centers, areas with good public transportation accessibility, and areas close to work or school are long-term and reliable anchor points for buyers.

Simplifying the energy repair subsidy process makes it safe to explore the possibility of assistance for tenants or landlords in both private homes and apartment buildings. In conclusion, falling real estate prices should be viewed not only as a threat, but also as an investment opportunity when real estate purchases are carefully considered. Combination''favorable DPE and properties of more modest size or converted to adapt to the current sociology can provide interesting returns, while the demand for rental housing is almost universally growing in France. The time has come for investors and buyers to adapt to the new market context and seize new opportunities in this changing real estate market.

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