Real estate: prices, credit... what developments to expect?

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Real estate: prices, credit... what developments to expect?


Posted on 22/07/2020

The Covid 19 crisis may have hinted at a possible deflation in property prices, however the current situation suggests that prices are not likely to fall. In fact, for the past five years we have been going through a period of rising property prices, coupled with a fall in credit rates and unemployment, which is favorable to investors. So what is the evolution of the situation of tenants, loans and real estate prices. 

A certain stability of prices 

The forecasts announced a fall of 20 to 25% in real estate prices, which seems derisory compared to the current declines which remain limited to 3 or 4%. Due to a period of strong growth over the last five years, prices are expected to stabilize and will not be able to rise in the face of the Covid crisis without falling. The coast of the cities could collapse by 10 to 15%, nevertheless, the credit rate still allows to avoid a relapse. 


The conditions for access to credit are stricter

Despite a slight increase in credits, up 0.15 points on exiting the confinement, they remain inexpensive. However, one thing has become more complex: access to loans. In fact, between the limitations on indebtedness, the minimum addition of savings and the search for a secure profile in the face of rising unemployment, the number of loans not granted increased by 10% this year. 

Constant rents

Rents are expected to remain stable and are unlikely to increase in the vast majority of cities. New regulations regarding rentals and re-rentals to the benefit of tenants. In addition, the situation allows landlords to have a loyal profile who will not look for other rentals out of caution, allowing them to reduce their vacancy costs.

Real estate prices remain stable

As mentioned earlier, property prices have been rising for the past 5 years, and the conditions for buying, however, one problem remains, that of housing.

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