Some turbulence, but no crash. Against all expectations, the announced real estate crisis did not take place. “In any case, at this stage, demand is not weakening”, specifies Joël Prémilhat, real estate consultant for La petite agence.com, in Montluçon.
If the first post-deconfinement weeks were marked by timid activity, the market was quick to recover. “We all felt a slowdown at the start, which is normal after two months off. And then on did not really know how things were going to be put in place with regard to the health situation », Emphasizes Vivien Héraud, director of the UDI agency in Montluçon.
No significant change in market prices
A period of uncertainty which can also be explained by the many unknowns concerning the attitude of investors and banks.
“We sail on sight”: after confinement, the real estate market in the Montluçon basin in search of a rebound
“It must be said that in terms of trade volumes, 2019 was a record year and 2020 started off on a roll,” says Béatrice André, of the Stéphane Plaza agency. What has happened since the Covid? “The prices have not really changed and, for the moment, the banks are playing the game”, she adds.
Loan rates were exceptionally low and Montlucon is located in one of the cheapest regions of France. That’s right, rates have seen a small increase ranging from 0.2% to 0.4%, but banks continue to give home loans at 110%.
Vivien Héraud, director of the UDI Montluçon agency
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Not enough to cool off buyers forced to put their project under cover during the first epidemic wave. Although “side issues” must have made things a bit trickier for some. “ There has necessarily been this fear among some investors to live with a dismissal, to lose a little more purchasing power, especially if they had to live with lower income during the period of confinement, ”Joël Prémilhat analyzes.
High demand for houses with gardens, but little supply
For the consultant of La petite agence.com, “the confinement effect” also had a positive impact.
The health crisis has revealed an interest in real estate among many people. Especially those who already had the idea of getting started and who have had time to mature this reflection.
Joël Prémilhat, real estate consultant at La petite agence.com
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It is mainly houses with an exterior that have been particularly in demand since the start of the summer. Goods that have become so popular that they are increasingly rare in the Montluçon basin.
Montluçon still attracts investors from large cities
What is more, more and more inhabitants of large urban centers, such as Paris, Lyon or Grenoble, are investing in rental property in the Montluçon basin.
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For Vivien Héraud, it is even appropriate to speak of a “big boom in demand” for several years, “and it has been maintained after deconfinement”, he adds. But why this attraction for Montluçonnais buildings?
Because our rental market is very interesting and can quickly be profitable, adds the professional. The Montluçon market has a rather low value, which makes the city quite attractive.
Vivien Heraud
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“And then there is a strong interest in stone, which remains a reassuring investment for many”, indicates Joël Prémilhat, real estate consultant for La petite agence.com.
But even if the rental profitability is still very good, maybe in the future it will be necessary to bring more proof to the banks, more contribution.
Béatrice André, Stéphane Plaza de Montluçon agency
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“We will see at the end of the year the real impact of the epidemic”
However, does this mean that real estate is immune to Covid19? “Too early to tell,” the three professionals answer in unison.
“Generally, there is always a slowdown with the arrival of autumn”, notes Béatrice André. For Vivien Héraud, “we will see at the end of the year the real impact of the epidemic on the economy, to what extent it has damaged employment”.
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Especially since the specter of a second wave of contamination, and with it of a re-containment, still looms. Faced with this eventuality, the UDI agency has taken the lead, and now offers virtual tours on its website. “I started to think during confinement. It’s more meaningful than photos and it at least allows people to do a preview. “
Sid Benahmed
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