The French, especially the most youth, are considering a property investment early seeing the low interest rate current situation and the stress linked to their future retirements. Their need to form a heritage therefore increases the market of real estate.
In the French capital, price of meter square exceeded 10,000 euros towards the end of the summer season. According to the assessment of the chamber of notaries, these prices averaged around 10,300 euros towards the start of 2020, presenting a increase by 7% compared to those of 2019. sales of housing old at the national level are close to one million transactions in one year. At the end of October, they reached 1,063,000 mutations, the equivalent of 10.6% over a year.
On the side of professional real estate, according to France SPCI, Civil Real Estate Investment Companies which invest in commercial real estate or desk announce a new record with a collect of more than 8 billion in 2019. What triggered this real estate turmoil ? It's here slump of the interest rate of the real estate loans. According to the Housing Credit Observatory/CSA, in November 2019, the average rate, out guarantee and all durations of credit combined, has drop of 1.12%.
According to the indicators, the reinforcement of the price is happening less and less quickly, especially in Paris. Towards the end of December 2019, this only reached 5.7% over the year compared to 6.6% in 2018. Despite everything, this start of variation in the performance curve progression of the real estate costs in the French capital does not appear to present any detention of these same prices. For Notaries of France, the year 2020 announces terms of favorable credit, and this, even if the rate of the loan real estate remain slightly in rise. The Notaries of France imagine a frenetic scenario on the side of buyers. According to them, buyers are considering carrying out their projects before these rates do not increase further and that they strongly affect their monthly payments.
