President of the Federation of Real Estate Developers (FPI), Pascal Boulanger grimaces: “The rebound in new real estate is not happening right away. We thought we would have hit bottom in 2023, but demand is even drier. Fewer sales, therefore fewer constructions even if, sometimes, the building permit has been accepted. »
The scale of the crisis? In the first quarter of 2024, sales fell by 41.2% compared to the same period last year, reservations plunged by 15.4%, and there were 23% fewer construction starts. Result of an addition of incompressible costs, the average list price of new homes does not weaken: 5,170 euros per square meter (+ 1.9% in one year).
Notary fees offered
To counter this critical situation, developers are making significant “gifts” to sell their lots. “Aggressive and scalable promotional offers with, sometimes, 10 to 20% off the face price displayed,” underlines Emma Leca, at Valorissimo.
“In the Basque Country, we negotiated a 2-room apartment for 290,000 euros, compared to 340,000 euros initially. This accommodation had been reserved and then put back on sale, due to the first buyer not obtaining a bank loan,” says Olivier Grenon-Andrieu, president of Equance.
5,170 euros/m2
This is the price in the first quarter of 2024 (+ 1.9% in one year).
– 41.2%
of sales in the first quarter of 2024 compared to the same period last year.
“The daily batch returns are legion. We have 300 lots available in the Bordeaux area,” continues Pierre Vital, president of FPI Nouvelle-Aquitaine. To complete their operations and attract potential candidates to purchase new properties, all commercial levers are activated: free notary fees, equipped kitchen, free parking space, etc.
Without personal contribution
Proposals with variable geometry, calibrated according to the standing of the program and its flow rate. Rather than offering discounts, some promoters sometimes agree to offer sums of money for a piece purchased.
“This is not, however, a big sale. We continue to organize promotional campaigns in March, June and September,” indicates Bernard Chanteux, Managing Director of Bouygues Immobilier. Until the end of June, this group is offering buyers “up to 25,000 euros to boost their personal contribution”.
“In order to complement the renewed real estate purchasing power linked to the decline in rates, we are temporarily lowering our sales prices by 3 to 10%! The importance of these discounts varies depending on the delivery time of our operations marketed in the inner suburbs of Ile-de-France (Bagneux, Clamart, Maison-Alfort),” boasts Olivier Bokobza, president of BNP Paribas real estate promotion and vice-president of the FPI.
Another initiative intended to make households want to buy new property again, Cogedim (Altarea group) offers first-time buyers eligible for the PTZ “the payment of notary fees, bank administration fees, the deposit and even interest dividers. Thanks to this combination, these people can buy new things without personal contribution. Result: for some, the monthly loan payment does not exceed their rent,” explains Paul Lassalle, France sales director of Cogedim. Implemented in Villeneuve-la-Garenne (92) then in Villejuif (94), this proposal will gradually extend to Rouen, Bordeaux, Toulouse, Montpellier, etc.
