In new real estate, it’s time for sales

These are already the sales at real estate developers: 10,000 euros discount for the purchase of a T2 built by the developer Sogeprom, 6,000 euros reduction on the sale price of a T3 from Eiffage, a discount of 40,000 euros on a T5 from Bouygues Immobilier. Discounts abound. And, almost every time, the notary fees are offered or the equipped kitchen installed.

In new construction, developers are increasing commercial operations to sell increasingly large stocks of housing. “It takes around three years between the moment we design a real estate program and the moment we sell itexplains Pierre Vigna, deputy general director of residential real estate and regions for Vinci Immobilier. The prices of housing currently available on the market were established based on economic analyzes dating back three years, that is to say without taking into account the sudden increase in mortgage rates. However, it must be remembered that in one year the average interest rate over twenty-five years rose from 1.9% to 4.2%. This represents a drop in household purchasing power of 20% to 25%. » Enough to block the market for the sale of new homes.

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According to data from the Ministry of Ecological Transition, reservations for new housing fell by 39.9% over one year. The stock of properties for sale has thus reached a historically high level, with 127,000 apartments on the market in the region. At the same time, 23% of reservations are subject to last minute cancellation.

Discounts not without risk

The promotional offers made by the promoters are therefore there to sell off the stock of goods for sale as quickly as possible. Operations not always crowned with success. “We never know in advance if a sales promotion is going to work. It’s hard to estimate, so we all try things everywhere. Sometimes it works very well. And sometimes that’s not enough to make buyers solvent”notes Béatrice Lièvre-Théry, general director of Sogeprom.

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Discounts that are very limited in time or which only concern a few accommodations and are not without risk. “Some small developers offer discounts, but can also close shop or leave a project unfinished”observes Vincent Martins, managing director of Wakerstone, a Parisian wealth management consultancy firm.

Because, if the real estate purchasing power of individuals has fallen by 20% to 25% in one year, the amount of price reductions and other discounts is far from reaching this level. The prices of new real estate are not likely to decline any time soon.

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