Real estate market recovery to 2024: the role of I. Nappi and J. Jehanno.

After the crisis of 2023, can the real estate market revive in 2024? Economist Ingrid Nappi, professor at the École du Pont de l'Ar and director of the research center of the Institut Louis Bachelier, and Yann Jehanneau, president of the Laforêt chain, talk about this.

What will the real estate market be like in 2024?

Ingrid Nappi, professor at the École du Pont de l'Ar and director of the Louis Bachelier Institute's research center, and Yann Géhanno, president of the Laforêt chain, comment on the market's fall from 2023.

"It's been very brutal and it's hit the whole real estate industry, meaning both the households who buy or rent and the producers, the real estate builders, who have been really affected by this crisis," explains Ingrid Nappi, regarding the frequency of this type of crisis occurring somewhere around once every fifteen years. "Sales lead times have increased by more than 9 days" over the year," adds Jan Jehanno. "The exodus of buyers is particularly noticeable, as almost one in four French people in 2023 canceled or postponed the purchase of real estate in a context of inflation and access to credit, which has proven extremely difficult," he denounces.

A recovery in 2024 will be difficult, especially because of interest rates, whose decline is not guaranteed. "We will probably hit high levels in the coming months, but we will no doubt remain at these same levels of interest rates in 2024," he says. Ingrid Nappi confirms that rates, even if inflation is falling, are strongly linked to the geopolitical situation in the world and therefore very difficult to predict.