The market of the new real estate in France
Contrary to the generally accepted ideas, the new real estate is not a Parisian specificity since nearly 80% of the sales of nine are done in areas. Between 1995 and 1999, the market of the nine knew a rise of 60%, with a total of 101.000 residences in 1999.
But that remains quite insufficient. INSEE, the official organization of statistics in France, estimates that it would have been necessary to build 320.000 residences since 1999 in order to answer per annum the request which will continue to grow until 2010, this being explained by an ageing of the population, an increase in the number of households due to the increase in the divorces…
In 2003, more than 314.000 residences were put in building site, and in 2004 these are 363.000 residences which were put in construction. The construction of apartments with increased by 20% in 2004 compared to 2003, and of 40% for the houses over the same period.
But in spite of that the request is always higher than the offer, which explains the raising of prices mainly, that it is with the purchase or the lease.
The property developers also stressed that the foreign customers (primarily of English and German) are of more important, the cost of the real estate in France remaining lower than that of the adjoining countries.
In addition to the purchase to place itself, the tax devices such as the Law of Robien started again the rental investment, further increasing the request for construction of apartments and new houses.
The promoters and the estate agencies have products with the sale less and less, and they are very quickly sold so much the request is strong.
The strongest areas knowing growth of the request are Brittany (40% of the purchasers come from Great Britain), the Limousin and Auvergne.
The principal French property developers, whose Kaufman & Broad and Nexity confirmed to have order books filled for 2005, in rise compared to 2004!
The request for new housings is not ready to stop, more especially as many social housing will be destroyed in the months to come, and the tenants will have to be rehoused in new units, not built yet for the majority.
