The maximum debt-to-income ratio does not apply in the same way to all profiles: first-time buyers sometimes benefit from relaxations, while some investors enjoy temporary exemptions. Despite the widespread rise in interest rates, certain regions are seeing an increase in the number of transactions.
Professionals report an acceleration in processing times for complete files, but bank selection remains stricter than in 2023. The home purchase assistance schemes are undergoing notable changes this year, altering investment strategies and access to property.
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What is the state of the real estate market in 2024? Major trends to know
The French real estate market continues its transformation that began in 2023. Since the rise in interest rates and the effect of inflation, the number of transactions has contracted, reversing the dynamics between sellers and buyers. This year, forecasts predict a decline of about 4% for real estate prices, but this trend hides marked regional contrasts. Paris, Lyon, and Bordeaux are feeling the impact with sharper declines, while the coast and seaside resorts continue to hold their ground, even seeing prices rise.
For many first-time buyers, the age of first purchase is moving further away, hindered by stricter borrowing criteria. Investors, on the other hand, are adapting their strategies, sometimes moving away from new properties. It should be noted that sales of new homes plummeted by nearly a third in 2023. As a result, attention is turning to older properties, often better located and more accessible. Energy-inefficient properties, long overlooked, are becoming a playground for those willing to undertake renovations, encouraged by the Climate and Resilience Act which mandates their energy renovation.
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Now, sustainability is a key factor in every negotiation. Energy performance, choice of materials, adaptation to new standards: these criteria weigh heavily on a property’s value. Technological innovations are also reshaping the landscape. Virtual tours in augmented reality, artificial intelligence for property management, real estate crowdfunding platforms: the sector is reinventing itself. To learn more about Les Archivistes and explore the heritage issues related to these changes, visit the Les Archivistes – Guardians of Timeless Stories page.
Medium-sized cities and rural areas are asserting themselves, benefiting from the rise of remote work and the search for a better quality of life. The real estate market has never been so fragmented, with each territory imposing its own rules and dynamics.
What are the pitfalls to avoid and the best practices to succeed in your real estate project?
Successfully completing a real estate project this year requires much more than negotiating an attractive price or signing quickly. In the face of an unstable context, creating a solid mortgage application is a crucial step. Gathering all supporting documents in advance, calculating borrowing capacity realistically, considering the stabilization or potential decline of interest rates expected at the end of the year: this is how banks accelerate their decisions and how the operation can be secured.
Sustainability is becoming a strategic criterion. Properties with high energy performance stand out during negotiations. Caution is advised with properties classified F or G: these energy-inefficient properties require often substantial renovations to remain on the rental market, mandated by the Climate and Resilience Act. Anticipating a renovation budget and integrating it right from the purchase offer proves wise. Public aids, such as the PTZ or Pinel, still exist in 2024, but access has tightened.
Adapt to the rhythm of the real estate sector: the taxation of furnished rentals is evolving, and interest in medium-sized cities remains strong. By broadening the area and type of property sought, especially for first-time buyers, new horizons open up.
Here are some reflexes to adopt to approach your real estate project methodically:
- Build an impeccable banking file
- Analyze the energy performance diagnosis
- Include the cost of potential renovations
- Broaden your criteria to seize the best opportunities
Mastering monitoring, evaluating each risk realistically, and remaining flexible: it is this agility that will make the difference in a changing market.
Support from professionals: an asset to secure every step
Given the complexity of the current real estate market, surrounding yourself with specialists becomes a true strategy for peace of mind. Every purchase, no matter how small, requires a thorough understanding of regulations, attention to interest rates, and vigilance regarding the energy performance of properties.
Engaging a real estate agent or a property management expert ensures you navigate each step without missteps: property diagnosis, title verification, negotiation, understanding the schemes (such as PTZ or the taxation of furnished rentals). Notaries, too, ensure legal compliance, and their role has strengthened, particularly through regular analyses that provide a fine understanding of local specifics.
Working with a broker also proves beneficial for optimizing financing. These professionals know how to present a file in the best light, anticipating the requirements of banks and taking into account the fluctuations in the sector.
Here’s what professional support can provide you:
- In-depth market and price analysis
- Assistance with administrative procedures
- Mastery of financial and tax schemes
- Anticipation of obligations related to energy renovation
The diversity of professions, increasing specialization, and the complexity of procedures require constant vigilance. Surrounding yourself with experts means moving forward with confidence, mastering your project, and maintaining control over critical decisions.