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Should we expect a drop in the real estate market this year?

Le Figaro

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Should we expect a drop in the real estate market this year?

The health crisis has reminded that real estate is a safe investment, a trend that is only being confirmed in the current context. The market is still just as dynamic across France. The rise in prices is 1.8% over 3 months and almost 8% over a rolling year. An activity that risks leading to a form of market drying up. "The psychology of buyers, especially the younger generation, has changed," analyzes Alexander Kraft, president of Sotheby's International Realty France - Monaco. They are ready to work outside big cities, provided they find a comfortable property with an extra room, an open kitchen, a balcony or even swimming pool. »

But beyond these market developments, the real question concerns the impact that the war in Ukraine could have, and the trends that already began before the start of the conflict: the return of inflation and the rise in interest rate. Indirectly, the war in Ukraine may contribute to maintaining high prices. The rise in the price of raw materials and their transport will make new real estate more expensive and send some customers back to old properties, while soaring energy prices can encourage costly renovations.

But the top of the range and the luxury are not suffering from this context for the moment. Alexander Kraft notes that “Big cities like Lyon and Paris (especially the 11th and 12th arrondissements) remain popular for those who crave social interaction”.

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