Real estate: time of insecurities

With inflation and major uncertainties about the future, both in terms of health and geopolitics, real estate remains more than ever a safe investment. The market is still just as dynamic, with a price increase of 1.8% over 3 months and nearly 8% over the year to date. But this activity risks leading to a form of market drying up.

According to real estate professionals, the phenomenon that will mark the year 2022 is the return to negotiations between sellers and buyers. “The psychology of buyers, especially the younger generation, has changed. They are ready to work outside big cities, provided they find a comfortable property with an extra room, an open-plan kitchen, a balcony or even a swimming pool. » Alexander Kraft, President of Sotheby's International Realty France – Monaco analyzes.

But the real questions above all are about the impact that the war in Ukraine will have on the real estate market, already affected by inflation and the slow rise in interest rates. Rising raw materials prices will make new real estate more expensive and encourage some customers to purchase old properties, while soaring energy prices can encourage costly renovations. The context of the war in Ukraine also risks discouraging foreign customers because of France's proximity to this country. Despite these uncertainties, top-of-the-range and luxury are still doing wonderfully, and the metropolises continue to attract: "Big cities like Lyon and Paris (especially the 11th and 12th) are still popular for those who crave social interaction" notes Alexander Kraft.

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