What is the real price of a home when you buy it?
Surely not the only amount of the property itself.
To see more clearly, Se Loger and Empruntis have published a survey on all-inclusive real estate, published by Le Parisien - Today in France.
In the process, Emmanuelle Wargon spoke on the subject during a Facebook live.
Selected pieces.
What has been the impact of the Covid crisis on the real estate market?
EMMANUELLE WARGON.
We have seen a small drop in transactions of -4% to -5%, which is not much, especially since last year was very good.
Prices have generally stabilized.
But it is still a little early to draw any conclusions.
The market has therefore held up rather well and I would like to take this opportunity to salute the professionals who have maintained their activity.
We were able to continue to visit, buy and allocate social housing.
Read alsoReal estate: "The production of loans by banks has fallen by 20% since January"
Should we fear that the banks will be more cautious in granting loans?
The objective is to give access to credit to as many French people as possible, but without taking ill-considered risks.
It is the role of the High Council for Financial Stability to ensure that projects are fundable but that people are not allowed to engage in operations which, in the long term, may put them in difficulty with a risk of over-indebtedness.
The overall mortgage loan outstanding (
Editor's note: the total volume of loans produced by banks)
continues to increase or to be maintained.
For the moment, access to credit is rather generally preserved.
Are aid in preparation?
I wanted to keep the loan at zero rate, which was due in 2021 and 2022. Another help is coming soon, via Action Logement (
Editor's note: ex-1% housing
), for all employees in the private sector.
It will be a boost to home ownership.
How can we ensure that the price increase is not penalizing for some?
The increase is linked to the fact that we have more requests than offers.
Part of my struggle is that we manage to build enough.
We need something new and transform offices into housing, we will need more tomorrow than today.
Or that vacant housing or previously targeted on furnished tourist accommodation is re-let.
The population grows each year by 200,000 people in France, 2 million people are waiting for social housing.
We also have very strong purchasing demand, whether from individuals for themselves, individual investors or institutional investors.
The development of the Grand Paris Express in some cities is a game-changer and could exclude some…
It is true that the Grand Paris Express will fundamentally change the face of the cities concerned and of the real estate market.
I wanted to bring together all these municipalities in a Station Quarters steering committee, so that we can work on housing operations and be sure that we produce enough offers to meet demand without the prices explode.
This means social housing near stations, home ownership programs, some of which are at controlled prices.
Are there other ways?
We also have a brand new tool: the dismemberment of property.
It is possible to buy your apartment without the underlying land, so much cheaper.
When we resell it is also cheaper.
A solidary land office remains the owner of the land.
For the moment, this type of operation is rather anecdotal.
But by 2024, we think we could have 25,000 sales of this type.
This tool makes it possible to control prices and target households with modest or intermediate resources.
Faced with an exploding demand, we are talking about a certain reluctance of sellers ...
Real estate is a trusted market.
The sellers may have been afraid of a collapse.
Trading volumes are likely to continue to pick up.
The increase in prices is not necessarily where they were already very high.
It can also consist of catching up in the suburbs, in medium-sized towns.
The market will balance itself, which is not necessarily bad news.
Read alsoReal estate: in Ile-de-France, prices are racing
Arrival of Ile-de-France residents with teleworking, price increases… What about the local inhabitants, penalized by the rise in prices?
We cannot regulate who buys where in France.
More seriously, I insist: we must build more.
There is a gap, and this is true in Nantes, Rennes, Lyon or Bordeaux, between demand, which is estimated between 2,000 and 8,000 households each year in these large cities, and the capacity to supply additional accommodation.
Each time we do not meet demand, we create this pressure on prices.
My fight is to convince mayors to issue building permits.
We have developers who are ready, places where we can still build on land rights-of-way.
A lot of money has just been put into financing construction on wasteland.
There may be a sort of reluctance on the part of elected officials, which sometimes reflects that of the inhabitants, to see new programs arrive.
In reality, we need it.
This is why we are going to set up a commission chaired by the mayor of Dijon, François Rebsamen.
He will give me some conclusions by the summer to see if there are things to do in the finance bill.
We must help the mayors to sign building permits, after which it is quick, in particular the new method of construction, I am thinking of construction with a wooden structure.
You take out a building in a year or fifteen months.
There is a ripple effect in the market if construction picks up again.
So it is possible.
What about renovation assistance?
We have made a lot of progress in aid.
The main one, Maprim'rénov, works very well.
It was accessible to half of the French last year.
It was opened on January 1, 2020 and we made 200,000 files.
This year, as we are opening it to all French people, we said to ourselves that we would make 400,000 beneficiaries.
In fact, we are already at 300,000 in mid-May.
This means that we will end between 700,000 and 800,000 aid payments this year.
And elsewhere?
There is also all the accompanying work to say what the right work to do.
We already have counters around the energy info spaces and the FAIRE brand.
We are improving that.
The Climate Act provides for generalized support, My renovator, which will start in 2022. It will allow everyone to be sure that they are doing the right mix of work.
