The Housing Real Estate Observatory (OIH), a tool at the service of professionals since 1978, attached to the Nice Côte d’Azur Chamber of Commerce and Industry, is ringing the alarm bell on the state of the real estate market in our department. Cyril Messika, president of the OIH draws up a not very glorious inventory: “The existing home market is struggling with a 5% decline in resales over four consecutive quarters. Prices for existing homes have increased (+11%) because the supply of new homes has fallen sharply (-70 % in the first quarter of 2023 for listings and -60% on sales).” In total, -11% of listings between 2022 and 2023, -17% of sales and, ultimately, +11% of available homes.
“Our house is burning”
Prices on new housing increased by 7% to peak at 6,363 euros per m² on average, the increase in interest rates, the tightening of loan conditions, the cost of materials and inflation are the obvious causes of this situation. Add to that some “Building permits refused, blocked, third-party appeals, you get all the brakes that penalize the profession.” We can say that “our house is burning”, that not much is done or cannot be done for the time being and that the profession is enraged. Cyril Messika to recall: “Housing is a basic necessity, and today, not only are households struggling to become homeowners, but the tensions observed on the rental market are adding to the difficulty of finding housing. There is therefore an urgent need to react, even though that the production cycle is long. The executive has certainly announced rapid measures, but will they be up to the slump that is shaking the sector as a whole?