Despite the sharp rise in prices, particularly in Paris, the volume of transactions has remained stable as the presidential election approaches.
Typically, the real estate market in the past has been rather sluggish when approaching an election deadline – this is not the case in 2017. This is the observation made by two of the French real estate networks of the Nexity Group, Century 21 (with 850 real estate agencies in France) and Guy Hoquet (with 450 branches), which recorded, in January and March, over a year, respective increases of 20% and 15.4% of their trading volumes.
This increase in activity in terms of sales was particularly notable in Paris (+ 17%), but also in the provinces (+ 15.5%). The French continue to benefit largely from low credit rates, despite their slight recovery at the beginning of the year. The historically high credit volumes that have been granted to them over the past few months confirm this.
“Contrary to what has been observed in the past, the presidential deadlines have not blocked the French real estate projects, indicating that they expect only the best in terms of real estate taxation in the future,” comments Fabrice Abraham, general manager of the network. It is true that the abolition of the housing tax for 80% of the French, wanted by some candidates in the presidential election, can appear to be good news for the French. Conversely, that of Emmanuel Macron to make the ISF a “real estate tax” does not encourage future owners. An evolution of transfer taxes has also been mentioned but it currently remains unclear.