The Penrvil Law and Free Credit Program: measures to improve the situation in the tight real estate market in Besançon..

Besançon was recently included in a "tense zone" regarding real estate proposals, along with153 other French municipalities. Two industry specialists explain why this measure contributes to improving the situation in the real estate market, particularly overloaded in recent months.

154 communes in France have been reclassified as "tense zones", including Besançon. The idea behind this classification is to unload a completely blocked real estate market. "Buying real estate is made more difficult because of rising interest rates, which reduces purchasing power, especially for first-time buyers," explains François Guglio, CEO of Bersot Immobilier. This is having an impact on the rental market. As landlords who want to buy their own homes can no longer afford to do so, they are not vacating. All this, together with the decrease in the number of new residential units, is leading to a complete lockout of the rental market."

Indeed, Romain Giancarlo, negociator at Schneider immobilier, elaborates on this idea: "a year ago, when we took out a loan from the bank for 200,000 euros for 20 years, the interest rate was 1.96%. Today, for the same amount and for the same term, the interest is 4.80%". This makes it harder for buyers to make up their minds. Added to this is the increase in the cost of materials, which also reduces purchasing power and, indirectly, the cost of living and energy, which also reduces family income. In simple words, it is like a snake eating its tail.

So, we have people who can't afford to buy a home, and therefore not vacate their homes, and people who can't find a place to rent.

Bruno Lemaire, Minister of Economy, announced on RTL radio on October 18, PTZ will be increased and expanded in 2024. "The mortgage collapse is happening and we want the maximum number of families to have access to mortgage credit today," said Minister Amandine Bego. "The purpose of the PTZ changes, including Besançon in the additional 200 towns, is that the PTZ affordability conditions will become more flexible and the proportion of the total loan amount will increase (from 40 to 50%). The income limit will also increase by 25%. This will bring back purchasing power for new housing as the total cost of credit will decrease," adds François Guglio.

Another opportunity that may be open is Pinel's Law, a mechanism that allows investment in new rental properties to receive a tax deduction. This measure already benefited the city a few years ago. "When the Pinel law was introduced in Besançon, between 0 and 20% of new properties were sold," emphasizes Romain Giancarlo. Both measures will relieve a completely blocked market and give a new impetus to the new housing market. With its side, the municipality plans to carry out several waves of construction. From 2025, about 1000 dwellings should appear in Besançon.