The return of buyers is confirmed
Real estate professionals record a net increase in purchasing candidates returning to the property market this year to finalize their buying projects. This confirms the real estate sector’s recovery begun in 2015.
The start of 2016 already saw a strong recovery of France’s real estate sector but halfway through the year, the positive trend is confirmed. Buyers are back, beckoned by very favorable borrowing conditions.
Real estate agency Guy Hoquet is one of the professional bodies recording the strong return of buyers to the property market. CEO Fabrice Abraham notes that “The first quarter of 2016 served as confirmation of the positive trend in terms of sales numbers begun in 2015. With a very good second quarter, we are consolidating this observation.”
He adds that “people in France have recovered their real estate purchasing power, thanks to mortgage rates that have remained historically low. Thus, the number of purchasing projects is up, with a 21% increase in demand recorded during the first half of 2016.”
Meanwhile, first-time buyers are steadily returning to “a market they had deserted these last few years.” Consistently with higher demand, property is selling faster, going from 77 to 67 days in Paris and from 95 to 92 days across the rest of France. Guy Hoquet also records a decrease in property stocks of 11.5% compared with last year.
On the other hand, investors are acting with more reserve, according to the real estate network, representing 16% of clients during the first half of 2016 against 18% during the first half of 2011. Fabrice Abraham explains that “rent control in Paris and an uncertain economic future have not allowed for a strong return of investors, despite them trickling back onto the market since 2015.”
According to Guy Hoquet, prices in Paris currently stand at an average of 8,006€/m2 and have increased by 1.8% over a year and by 1% over three months, while in France as a whole the property price average is 2,347€/m2 and has grown by 0.5% over a year and by 3% over three months.
Photo credit: votreargent