Around 1.5% in 2019-2020, real estate loan rates flirted with 5% in 2023. For comparison, a loan of €200,000 at a fixed rate of 1.5% over 20 years generates interest of €31,620. For a rate of 4.2%, the amount of interest represents €95,954. Combined with general inflation, the increase, carried out by central banks, has discouraged many potential buyers. [Retrouvez le dossier spécial immobilier dans le dernier numéro du Mensuel de Rennes].
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2 Loans: tougher conditions
This was an imprecation from the High Financial Stability Council (HCSF) at the end of 2019: tighten the conditions for granting real estate loans. Among the directives: no longer authorize loans beyond 25 years and not exceed a debt ratio of 35%. Borrower insurance and household expenses are taken into account in this rate.
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3 Purchasing power
In the city of Rennes, the price of apartments has only fallen by 1.1% over one year. An almost imperceptible decrease while, over five years, prices have increased by 18%. “Sellers now agree to lower prices slightly,” says Thomas L'Ollivier, president of the Chamber of Notaries of Ille-et-Vilaine. But it's more of a landing than a real decline. »
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4 War in Ukraine
With Putin's aggression on Ukraine in February 2022 – and the subsequent blockade against Russia – energy costs jumped: + 90% for gas and + 60% for electricity at the start of the war. The conflict has also increased the cost of raw materials, already impacted by the covid crisis. According to INSEE, production costs in the construction sector increased by 7% between the first quarters of 2022 and 2023.
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5 End of the Pinel system
Announced for December 31, 2024, the end of Pinel is a hard blow for investors. Between 2021 and 2024, the number of investment project launches has been halved in Brittany. Launched in 2014, the system allowed a buyer to benefit from tax advantages provided they rented their home.
Regulation.
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6 “Binding” standards
“Increased constraints in construction and environmental standards are increasing production costs,” assures Nolwenn Lam Kermarrec, co-president of the Kermarrec real estate group. On the investor side, the ban on the rental of energy sieves from 2025 should not encourage the purchase of old properties. As for zero net artificialization (zan), its gradual implementation until 2050 will cause a gradual reduction in available land, which should slow down individual construction.
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