Compared to the first half of 2012, ORPI group’s real estate activity has increased by 7.8%. A significant indicator given the group’s importance on the French Riviera, with one in seven sales conducted by an ORPI agency, representing 15% of the regional market. However, this is not necessarily a reflection of the general market, which remains stagnant.
For Jacques AGid, president of GIE ORPI Côte d’Azur, the purchasing power of buyers needs to be increased. The main barrier to property ownership remains the price for 44% of the French, according to an exclusive survey conducted by ORPI on “The French and Access to Property.”
This figure is even more significant for 30% of current tenants compared to only 22% of current owners. The difficulties for households in obtaining bank loans significantly hinder the market, as banks have tightened the criteria for obtaining mortgage loans.
Another reason is the disappearance of financial assistance like the “PTZ +” for older properties. All these factors discourage first-time buyers and the most modest households from becoming property owners one day. Of the 60% of French who admit to encountering financial difficulties and have ongoing real estate purchase projects, 56% note that these are caused by cyclical difficulties and gloom. 57% attribute their reluctance to the context of uncertainty, and 43% to their fear of long-term debt.
ORPI offers a solution by facilitating a loan with the help of Crédit Foncier, while providing a 3,000-euro aid from the ORPI network to buyers. A significant gesture, but seemingly insufficient as the market remains constrained by the ongoing economic crisis. The trend for the coming months does not appear optimistic.
