Real estate: François Bayrou's audacious plan to revive the market


19h00 ▪
4
min reading ▪ by
Luc Jose A.

For two years, the French real estate market has been going through a deep crisis, fueled by soaring prices and difficulty accessing credit. Faced with this critical situation, François Bayrou, Prime Minister, presented a set of measures aimed at revitalizing this vital sector for the national economy. Focused on tax incentives, increased support for construction and regulatory adjustments, these proposals seek to respond to current challenges with a view to taking into account social and environmental issues. If these initiatives raise hopes of a rebound, they also raise many questions about their effectiveness and their implementation.

Supporting real estate: ambitious measures

In his general policy speech, François Bayrou unveiled a series of strategic measures to revive a losing real estate market. Among these, the creation of 15,000 student accommodations per year over a three-year period stands out as a direct response to the critical housing shortage. The Prime Minister underlined the importance of this initiative, and says that it aims to “restore confidence to younger generations and ease pressure on university towns”.

To strengthen accessibility to property, the government also announced the expansion of the Zero Rate Loan (PTZ). This adjustment aims to integrate more first-time buyers, with particular attention to rural areas that are often neglected. In addition, a financial incentive will be offered to mayors in order to promote the “gentle densification” of territories. This approach aims to respond to growing housing needs, but also to limit the negative effects of urban sprawl, with a view to reconciling urban planning and environmental sustainability. Thus, these measures reflect a stated desire to revitalize a sector in crisis, in order to address social and territorial issues.

Uncertainties and challenges to overcome

In addition to the measures aimed at reviving the real estate market, François Bayrou also mentioned a possible increase in notary fees. This proposal, immediately criticized by professionals in the sector, is seen as a potential obstacle to transactions. According to a spokesperson for the National Real Estate Federation, “this is a decision contradictory with the stated objective of relaunching the market”. In a context where interest rates continue to rise, this measure risks worsening the difficulties of access to property for many households.

Conversely, the exemption from inheritance tax on new housing could constitute an important lever to boost construction. This initiative aims to stimulate demand in a key segment of the market, in order to provide opportunities for first-time buyers. However, its effectiveness will depend heavily on the efforts made by local authorities to adapt infrastructure and meet the needs generated by the increase in construction. In this context, the balance between market support and operational feasibility remains a major challenge, which will require close coordination between public and private actors.

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These measures raise questions about their budgetary feasibility and their capacity to sustainably transform territorial dynamics. Although they carry the hope of a recovery, their effectiveness will depend on rigorous application and close consultation with local stakeholders. In a market weakened by structural imbalances, these initiatives constitute a promising starting point. However, they must be accompanied by a long-term vision to fully meet the expectations of households and professionals in the sector.

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Luc Jose A. avatarLuc Jose A. avatar

Luc Jose A.

A graduate of Sciences Po and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

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