A successful kick-off for low-cost housing. By launching in early April the marketing of 23 first homes at 5,000 euros per square meter, the city of Paris did not expect such success. A total of 2,685 applications were submitted in less than four weeks, between April 6 and 30. "We knew that the operation would arouse the interest of many Parisians but here, we can say that it is a very big box, smiles Ian Brossat, the deputy in charge of housing for the mayor Anne Hidalgo. It testifies to the appetite of Parisians to become owners of this type of apartment at 5,000 euros per square meter ”, which is half the price of the Parisian average.
"This represents 116 applications on average per housing", welcomes the elected Communist, stressing that the site of the Foncière de la Ville de Paris (FVDP) has been consulted more than 80,000 times.
Created especially in 2019, this property's mission is to produce new housing accessible to middle-class families, "too often forced to leave Paris to become owners," adds Ian Brossat.
How? 'Or' What ?
By implementing the Real Solidarity Lease (BRS).
Provided for in the Alur law, this device separates the buildings, the walls which are bought by households, from the land which, in turn, remains the property of the land.
In other words, the first-time buyers own their apartment but remain tenants of the land.
This land is subject to a long-term lease renewable for 99 years and to a royalty (2.5 euros per month per square meter).
As part of this first operation, the goods sold range from T2 to T5.
For a two-room apartment of 47 square meters (m2) sold for 238,000 euros, the royalty is set at 118 € per month, against 223 euros per month for the largest of the five rooms of 89 m2 sold for 437,000 euros.
40% of candidates from the social rental stock
New housing is acquired at a discount price because the land, which represents a large part of the purchase price, remains the property of the land company. Do not expect to realize any real added value in the event of resale of the property, only valued by the construction cost index ... This system already exists in about twenty French cities (Toulouse, Lille, Lyon or Rennes) as well as abroad (United States, Switzerland, United Kingdom, Denmark, etc.). But this is the first time that Paris has tried it through this salvo of 23 new homes. Located in the heart of the capital, on the site of the former Saint-Vincent de Paul hospital in the 14th arrondissement, these first apartments must be delivered in the course of 2 025. “Others should soon follow,nearly a thousand housing units in total should see the light of day during Anne Hidalgo's term of office, ”indicates Ian Brossat.
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If they are numerous, these applicants display a homogeneous profile.
"Of the 2685 applications, 78% live in Paris, 62% work there but above all 90% of the candidates are tenants in a first-time home ownership process, 40% of which come from the social housing", notes the Town Hall.
A good surprise there too for Ian Brossat who sees in it "a good way to turn the tenants of the social housing whose turnover rate remains low at around 4%".
And as the property company targeted, these are families with several children for the most part (70% of requests relate to three rooms and more).
A strict selection process
The selection process is carried out with great success. Since the beginning of May, the applications - all anonymized - have been sorted and investigated in order to verify that they are indeed eligible. The property company ensures compliance with two legal criteria: a level of resources capped by law (4500 euros net / month for a couple with a child) and the obligation to make future housing its main residence. But also the respect of three other criteria imposed by the Parisian real estate company. Applicants undertake to request an apartment in line with their family type (a four-room apartment for a couple with two children),to be in contact with Paris (live or work there) and must experience difficulties in their current accommodation, knowing that the city values applications from social housing (a point bonus is awarded to them).
After this first screening, a “selection commission” must arbitrate on June 8 before a first meeting of the 23 “elected” households scheduled for mid-June.