Seizing real estate opportunity: "Cost, mortgage rate... the stars are now aligned, let's seize the opportunity!"
Real Estate Market Anticipated to Rebound by 2025, As Per Century 21 France President
In the aftermath of a prolonged real estate crisis, marked by escalating credit rates, there is a glimmer of hope for potential homebuyers. Charles Marinakis, the president of Century 21 France, as a guest on Le Grand Rendez-vous de l'immobilier (our website/Radio Immo) on May 23, predicted a near 10% rebound in the real estate market by 2025.
With old property prices having taken a significant dip of 8% to 12% in the last two years, and credit rates dropping from over 4% in late 2023 to approximately 3.20% currently, Marinakis suggested that "the planets are perfectly aligned today, and it's been a long time since we've seen this, so you should take advantage of it!"
While some argue that over 3% is still excessively high for credit rates, Marinakis asserted that rates within this range are not unreasonable, attributing to banks' ability to sustain profitability. He foresees an upsurge in real estate transactions this year, potentially reaching 850,000—a figure he considers the market's normal size—provided that price increases do not surpass 3%.
However, Marinakis emphasized that price increases in the real estate market must be tightly controlled to prevent eroding the buying power of prospective homeowners. Consequently, he shared reservations about relaxing the rule stipulated by the High Council of Financial Stability, which restricts monthly credit repayments from exceeding 35% of a buyer's income.
The European economy foresees moderate growth with some indicators predicting a housing market turnaround, while French property prices are expected to stabilize in 2025, with increased investment in secondary housing. Despite these prospects, it is crucial to note that market activity and prices present mixed signals, with some predictions pointing to a broader decline, particularly in luxury markets.
In conclusion, the much-anticipated rebound in the French real estate market, as championed by the president of Century 21 France, could be a reality. It is essential, however, for buyers and sellers alike to navigate this market with caution and adhere to prudent financial guidelines.
Investors may find advantageous opportunities in the real-estate market, as Century 21 France president Charles Marinakis predicts a 10% rebound by 2025. With carefully controlled price increases and adjustable interest rates, strategic actions in finance can lead to lucrative real-estate investments in the near future.
