The latest analysis from Foncia (a group of companies specializing in residential property management and rental) showed that the market is recovering at the expense of “secondary”. Thus, the number of transactions increased by 8%, the average sale period was 3 months, prices across the country almost unchanged (+1%). At the same time, buyers began to buy housing slightly larger area. The most objects are sold in Paris, Lyon and Nice, from them the demand in other regions is significantly behind.
Nevertheless, the volume of transactions is still far from the pre-crisis, when annually concluded more than 1 million transactions. The main demand is formed at the expense of first-time buyers and depends on credit terms.
The rental market in France remains in crisis. The number of concluded rental contracts for the year fell by 3.5%. Housing supply decreased by 7% and the occupancy rate reached 93.6%, reflecting a persistent shortage of supply.
What is the rental shortage related to?
The shrinking rental market is largely due to owners leaving the market: about 47% of landlords have already withdrawn their properties from the market. Most often – with the purpose of subsequent sale. The main reasons are falling profitability (the French authorities intend to control rent) and growing requirements for energy efficiency.
Energy efficiency is a key factor: it is the ban on the delivery of housing with energy efficiency class G (mainly old houses) from 2025 has increased the deficit. In total, about 25 thousand dwellings are involved in the process. The most acute shortage of housing is recorded in major cities, university centers and tourist areas of the country.
