Real Estate: People under 30 are owning less and less, and that’s a “problem,” according to Century 21.


Paris, April 24, 2020 (AFP/JOEL SAGET)

“What will drive the real estate market for the next 30 years is demographics and new buyers,” explained Charles Marinakis, President of Century 21 France, in an interview with BFM Business this Wednesday, May 11th.

The youngest are less and less homeowners. Indeed, according to the Century 21 real estate network,

the share of people under 30 decreased by 12% in the first quarter of 2022.

on transactions. For Charles Marinakis, president of Century 21 France, “it’s a real problem,” he freaked out on the set of the film.

BFM Business

this Wednesday, May 11th.

“Unfortunately, in this age group, often

they are the first customers.

They are strongly influenced by all negative market factors. Prices have increased,

banks have an additional level of requirements

– debt capacity is limited to 30%, personal contribution… Banks are starting to follow

other credit eligibility criteria

: energy filters and the work that needs to be done to bring them into line, multi-year work plans that will be voted on in condominiums, and energy costs to travel between the place of residence and the place of residence. work…” he said.

“These are converging factors that

punish this people

who do not necessarily have a significant personal contribution or very high levels of income – they often work in their first job or have their first permanent contract. This is really problematic, because what will

regulate the real estate market

in the next 30 years, it’s demographics and new customers,” continued Charles Marinakis.

2021, a record year for old real estate

However, according to Century 21, according to data released last January, 2021 was a “record” year for old property in France, but that comes with risks.

“eliminate the humblest people”

market. The price per square meter really continues to grow: according to INSEE and notaries, in the third quarter it reached 2,355 euros for houses and 3,878 euros for apartments. This is an increase of 7.4% for houses and 5.3% for apartments.

The price increase is due to

market tension.

After falling by 4% in 2020 under the influence of the pandemic, the number of transactions quickly recovered, thanks in part to low borrowing rates. Some French people took advantage of this to

buy more after giving birth,

while investors preferred to invest in stone, considered a safe investment in the face of health uncertainty. The number of purchases of apartments and houses in 2021 should return to the record level of 2019, at about 1.7 million, according to notaries. But the number of old houses on the market remains limited.

The problem with this price increase, according to Century 21, is that it “starts

divisibility of the lowest-income household and the youngest category”.

Young people or households with the lowest incomes “have no choice but to downsize or buy farther” from the big cities, Laurent Vimont assured.

Logically,

the personal contribution required to acquire property has increased:

it averaged €32,153 in the second half of 2021, with an average loan of €247,499, according to Century 21. In this context, “any increase in borrowing rates will reduce the share of solvent households,” he added.

He also warned of the risk of seeing investors

turn away from the market

with a ban from 2025 on rental housing, considered a “heat sieve”, very energy intensive. The share of acquisitions held for investment in rentals was the highest in 2021 for the fourth year in a row, at 30.2%, up 2.7% from 2020.

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