The real estate market has undergone many changes since the 2019 crisis, mainly affecting new properties. Although prices have risen since the health crisis, some solutions still allow you to purchase recent property. Let’s sum up the news in the field of new real estate.
Strong demand for new housing after Covid
2019 has been an exceptional year in terms of sales in the real estate sector. According to the original acts of notaries, the number of transactions exceeded the one million mark. It was this boom, contrary to all expectations, that subsequently led to a decrease in the rate of acquisition of new housing by 63.9%. There is also an increase in prices per square meter. This trend worsened after the lockdown and the health crisis caused by COVID 19. Therefore, the real estate sector had to take a break for many months.
However, the post-COVID period is marked by a change in this trend. Indeed, the households that started their procedures prior to confinement kept their shopping plans. Added to this are new applicants looking to purchase a home under the new real estate program due to the effects of the health crisis. Demand is growing now, and buyers prefer comfortable housing with an open area (terrace, balcony, garden, etc.).
New real estate programs impacted by rising prices
Rising prices inevitably affect the market for new buildings, despite the efforts of developers to maintain a constant supply. These costs vary depending on the properties offered and the regions in which they are located. When it comes to the types of new homes available on the market, buyers look to:
- city apartments,
- single family home,
- office residences intended for investment,
- apartment buildings divided into several apartments.
In this regard, future buyers most often have to resort to the services of a service provider in order to find a house or apartment that suits them best. Generally, this is the solution that people prefer to find their way in a complex sector that requires a lot of reaction.
Why do real estate prices vary so much?
Recent developments in the real estate sector are the basis for increasing purchase prices for new properties. For the most part, they have gone up in price, though some are still available at affordable prices. According to a Laboratoire de l’Immobilier report published in November 2021, the price per square meter of a new apartment in a city of more than 45,000 people is currently €5,195 in metropolitan France, up 5.7% from the previous month. previous twelve months. With insufficient supply of new housing and huge demand, finding a property has become a real headache.
However, there are big differences between cities. Growth is less noticeable for new apartments in Paris (+3.4%) and Bordeaux (+1.8%). On the other hand, the impact is more pronounced in Rennes (+9.7%), Toulouse (+8.4%) or Grenoble (+8.1%).
The evolution of the building policy of each municipality obviously affects prices. Therefore, it is usually recommended to find out about real estate programs from the developer in order to determine the most profitable sector. With detailed statistics and extensive real estate experience, this expert can make your search easier. Indeed, he uses his connections to find the cheapest products according to the needs of each customer. Whether you are looking for a new home or apartment, you will have access to the best resales and the best real estate on the market depending on the city you want to buy from.
Real Estate Purchase Assistance Schemes Update in 2022
Several devices are making it easier to buy property in 2022 due to acquisition difficulties noted by the government. Such is the case with Pinel’s law, which has several goals, including supporting the supply of leases in areas of high demand. Its second goal is to offer fixed-rent housing to households that find it difficult to access the market without necessarily being able to qualify for social housing.
Pinel’s tax exemption law applies to the purchase of old property, provided that the work is at least 25% of the total investment. Likewise, housing must be located in a specific area established by decree. With this system, you can reduce your income tax by 12%, 18% or 21% up to the limit of 63,000 euros and easily create a real estate asset. In addition to this device, you can also use:
- Malraux Law,
- sensi-bouvard law,
- Denormandie’s law.
These various devices make it quite easy to carry out the acquisition of a new property.
Why invest in new property?
One of the most suitable cities for real estate investment is undoubtedly the city of Bordeaux. Despite rising prices in recent years, the vacancy rate here is 7%, which is significantly higher than in Ile-de-France, where new housing is rare. Property tax in this city is slightly lower than in other neighboring municipalities. Thus, investing in this metropolis is a way to save money by purchasing quality real estate. Bordeaux is also known for its dynamism and is a great tourist destination. Thus, it is also the city to be preferred if you want to turn your accommodation into a seasonal rental.
In general, notary fees are much lower if you are looking to buy a new home rather than an old one. You can also take advantage of an interest-free loan. This element allows anyone to fill the gap in the budget for the purchase of new property.
https://www.loi-pinel.fr/dispositif-pinel/defiscalisation/#:~:text=D%C3%A9fiscalisation%20immobili%C3%A8re%20%3A%20la%20loi%20Pinel%20compar%C3% A9e%20to%20other%20fiscal%20devices&text=%20device%20Pinel%20allows%20you, max%20%C3%A0%2063%20000%20%E2%82%AC.
https://www.cafpi.fr/credit-immobilier/actualites/6-changements-borrowers-immovable-2022#:~:text=soient%20leurs%20revenus.-,Evolution%20des%20conditions%20d’attribution%20d ‘a%20cr%C3%A9says%20real estate,%20l’guarantee%2Dborrower.