2023-08-05 02:00:00
The real estate market is going through a difficult period with a significant drop in prices which seems to be intensifying. Large cities like Paris are not spared by this downward trend. The Notaries of France even predict that the price per m² in Paris could fall below the symbolic bar of 10,000 euros during the 3rd quarter of 2023.
The number of credits awarded divided by 2 in one year
Several factors contribute to this fall in real estate prices. First, soaring interest rates have a negative impact on the market. The banks pass on these rate increases, which leads to many refusals of loans, according to BFM TV, in July the number of loans granted in one year was even halved!
This situation is aggravated by the restrictions on the granting of credit put in place to limit household indebtedness. Thus, potential buyers often find themselves unable to obtain financing for their real estate project.
Opportunities for investors?
This general decline in real estate prices may represent opportunities for some investors. For example, in Brest, the average selling price on August 1, 2023 was €2,229/m², a drop of 1.9% in three months according to Fnaim.
Similarly, the price of SCPI ACCIMMO PIERRE shares fell by 17.07% to just 170 euros. However, it is important to remain cautious and to carefully analyze the risks before investing in real estate.
Some tips for investing despite falling prices
Take the time to study the local real estate market and its prospects. Choose properties with a good quality/price ratio and potential for recovery. Do not hesitate to negotiate the price of the property when purchasing to make the most of the drop in prices. Opt for a mortgage with a fixed rate to protect yourself against changes in interest rates.
How are the players in the real estate market reacting to this situation?
Faced with this fall in prices, real estate professionals must adapt to maintain their activity. Some seek to diversify their offer, for example by offering rental management services or support in seeking financing. Others are turning to segments less affected by the crisis, such as new real estate or social housing.
The importance of a suitable strategy to get through the crisis
Real estate market players must put in place effective strategies to deal with this situation. It is crucial to fully understand the mechanisms that explain the fall in prices in order to anticipate market developments and adapt your offer accordingly. Focusing on transparent and reassuring communication with customers can also help build their confidence and maintain a sufficient level of activity.
A changing real estate market
We are witnessing a rapid drop in real estate prices which is felt everywhere in France, even in big cities like Paris. This is a situation that can be interesting for some investors, but which also poses quite a few challenges for real estate professionals. More than ever, it’s crucial for them to find effective strategies to navigate this storm and prepare for what tomorrow brings.
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