Challenges in the French Real Estate Market: Government Policies, Economic Decline, and Industry Concerns

2023-06-16 07:46:13

Real estate professionals are gray. They take the hard knocks. The new home market is in decline. In the old sector, prices are falling too slowly to breathe new life into a declining transaction volume, which should drop below the million mark in 2023 in France. The housing plan announced by the government is considered very timorous and too economical by the profession. The general opinion is that it will not allow the machine to be restarted. The executive probably prefers to let supply and demand adjust rather than leave feathers there, in this period when the rating agencies are watching for the slightest budgetary misstep.

It is not the latest announcements from the High Council for Financial Stability (HCSF) that will facilitate access to property for households seeking financing for their main residence, brokers thunder. There is indeed no question of touching the sacrosanct maximum debt ratio set at 35%. At the end of the June 13 meeting, the authorities contented themselves with making a small gesture in favor of rental investors who were increasingly hesitant to turn to real estate, and who would soon be deprived of the Pinel tax advantage.

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#Real #estate #credit #shock #rates

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