The Chamber of Notaries of Reunion has just published its latest real estate situation note, which presents the median figures for real estate transactions in Reunion for the period from June 2023 to June 2024.
Key points of the economic report:
• Decline in transaction volumes: The Reunion real estate market has recorded a significant drop in transaction volumes, of around 25% since the end of 2022. This downward trend, observed for the third consecutive year, is now worrying.
• Price stabilization: Despite the drop in volumes, the prices of old and new apartments continued to increase, but at a more moderate pace than in 2022. The prices of old houses have stabilized over a year.
• Predominance of small surfaces: The share of sales of houses with 4 rooms or less and apartments with 2 and 3 rooms is always greater.
• Price heterogeneity: The Reunion real estate market remains marked by strong heterogeneity in prices depending on geographic areas and types of property.
Mr. Christophe LOISEAU – Deputy Regional Director of the CDC: “all stakeholders are aware of the issues. The funding is there, the skills are there too, there is a collective challenge to take up. We can only succeed collectively. »
Mr Philippe LEBON – Secretary General of the FRBTP: “I have a big concern directly linked to the current situation. The latter has a certain impact on the “act of building” and the “capacity to build”.
Let me explain, the act of building is extremely long, the procedures are long and time-consuming, this has the consequence of blocking the residential path of the people of Reunion and regarding the capacity to build, we will gradually lose the workforce linked to the significant increase in collective procedures (dismissals), and the building is unfortunately losing its purpose. We had a crisis monitoring committee where all construction stakeholders were present around the table. There have been commitments made by communities and contractors, we must now wait for the fallout while ensuring that the situation does not deteriorate further. » Collective work must be continued.
Maître Nency LEUNG-YEN-FOND-GIRAUD – President of the Chamber of Notaries of Réunion underlines: “The decrease in transaction volumes and the increase in mortgage rates invite us to remain very cautious regarding market developments. The drop in rates observed in recent months may support volumes and have an impact on prices. We will remain attentive to developments in the situation. »
Mr Philippe LA COGNATA – Director of IEDOM Réunion: “The easing of interest rates has been underway since June 2024. It is expected to continue in 2025, which will stimulate demand for residential property loans.”
