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Green light for the Azurean real estate? After years of sluggish activity and scarcity, are the professionals regaining their morale? It’s the smile of Fréderic Pelou (usually so serious), the recently re-elected president of FNAIM 06 for the next three years, that might suggest so.
Besides, don’t we say that after the rain comes the sunshine?
In fact, even if it’s not great, it at least seems much clearer: the restart of activity is here.
The near stability of prices (+2.26% in Nice while in the other three regions, Cannes, Antibes, and Menton, they range from -0.5 to -1.50%) has allowed for a dynamism that had been long forgotten: +5 in the first quarter of 2015 compared to 2014, with the prospect of reaching double digits by the end of the year.
The financing rates for real estate loans remain favorable, and forecasts suggest they will stay that way, even if a slight increase is probable in the medium term.
Result: The market for first-time buyers is moving, especially for small properties, which stimulates the rest of the market without creating tensions between supply and demand on the price front.
The only remaining sore point, playing a negative role, is the flow of documents needed for the formalization of a transaction: the rightful concern for informing the buyer turns into massive bureaucratic work, which slows down or paralyzes the buying/selling process.
Finally, just to update on this matter where FNAIM had played a leading role, the “solidarity lease” project (remember: leasing of vacant private-owned properties into the rental market in exchange for tax benefits) has not yet taken off at the national level despite the favorable reception by ministerial authorities.
As of today, while waiting, FNAIM is working on verifying conditions for a pilot project at the local level (06 or another department).
The wait for a hypothetical drop in prices has convinced them of their stability, particularly in our department. They are now ready to take action;
- On the other hand, the exceptional financing rates are now coupled with reduced personal contribution requirements by financial institutions (currently from 15 to 20% compared to nearly 30% previously). Thus, a larger number of purchase candidates now have access to these particularly attractive loan conditions.
The only downside is the widespread extension of resale periods since the entry into force of the ALUR Law in March 2014. Under the pretense of providing more information to the buyer of a co-ownership property, which represents the vast majority of sales, the Law drowns them in masses of hardly readable documents that can be lengthy to obtain, paralyzing the sales process.
