The French Remain Confident About Real Estate Investment

The Notaries of France have released the results of their third survey on French people's real estate experiences. The French remain confident in real estate investment.

A large majority of French people (about 9 out of 10 respondents) still view real estate as something they should look into as soon as possible and as something that is always a good investment.

The signs of a tightening market are palpable. In fact, French people find it increasingly difficult to find a property that meets their criteria (41% say it’s easy vs. 32% in 2021 / -9 pts) and even more difficult to secure financing to purchase a property (24% say it’s easy vs. 50% in 2021 / -26 pts).
Thus, in the current environment of higher interest rates and difficult borrowing conditions, it is considered even more necessary than before to have a substantial down payment to make a purchase (82%, +10 pts vs. 2021, +16 pts vs. 2019).
 

Over the past two years, 1 in 5 French people say they have had to give up or abandon a real estate project, a trend that affects younger people the most. For nearly three-quarters of them, this decision is due to financial reasons, such as rising housing prices, interest rates, and inflation or a loss of purchasing power.

The energy efficiency of housing is becoming an important issue

Among people who have moved or are planning to move, the desire to have a home with an outdoor space (balcony, patio, or garden) is by far the most commonly cited reason.
 

It should be noted, however, that access to a home with better energy efficiency—an item added this year—ranks second among the reasons for moving, tied with the desire for a larger home.
 

As a result, nearly 8 out of 10 French people say energy efficiency is very important to them, and more than one-third say it is extremely important for their future home. They even rank “energy self-sufficiency” as the top priority when asked to describe the home of the future.