Against all expectations, 2021 was the year of all records in existing real estate. For Laurent Vimont, president of the Century 21 France real estate agency network, these records were once again made possible by borrowing rates, historically low in 2021, which are the fuel for the dynamism of the market. ” They allow first-time buyers to go from “I would like” to “I can” buy and second-time buyers to make their plan to live better in their home a reality. », Summarizes Laurent Vimont.
What to come back in figures on all these records:
Record number of transactions
The latest estimates from the National Federation of Real Estate (FNAIM) count 1.18 million sales of old homes during the year 2021, or 158,000 more transactions than in 2020. This new record exceeds by 60% the average level of transactions on the French real estate market from 2010 to 2014 (around 738,000). Since 2015, 7 years of almost continuous progress have appeared with the mobility of the French which has further accelerated since the health crisis.
Record price per m²
The average price increased in 2021 for the sixth consecutive year in the house segment to € 2,355 per m² (+ 7.4% compared to 2020) according to Century 21 estimates. For apartments, it even increased for the 7th consecutive year at € 3,878 per m² (+ 5.3%). ” We have rarely seen such consistency in prices: it goes up everywhere (except in Paris)! », Underlines Laurent Vimont.
Record of average amounts per transaction
Already at its highest in 2020, the average amount of a transaction records a new record evaluated by Century 21 at € 267,524 for houses (+ 7.7% in one year) and € 227,897 for apartments (+ 5.6% ). These amounts should be compared to an average area of approximately 117 m² for a house and 59 m² for an apartment.
Record of loan portions and durations
Century 21 observes that households make the most of all credit levers to finance their acquisitions. The average loan term has reached record highs (21.1 years compared to 21 years in 2020), as has the amount of financing obtained by borrowing (81.8% compared to 80.5% in 2020).
Record for rental investment?
The proportion of acquisitions intended for rental investment has grown steadily for the past 7 years among Century 21 clients: it went from 17.4% in 2014 to 30.2% in 2021. In other words, nearly 1 transaction out of 3 carried out last year in the Century 21 network were intended for rental investment. Unheard of, but it has been several years since the share of investors is much more represented among Century 21 clients than in other networks.
For Laurent Vimont, this record remains to be compared ” a global context of uncertainty on pensions and lack of visibility on the future which makes the stone an absolute safe haven “. ” Real estate is the only investment that we buy on credit and that can partly be self-financed by the rents generated »Likes to remind the boss of Century 21 in France. It is difficult to imagine, however, that this trend will not be slowed down in 2022 by the future new renovation requirements of the most energy-consuming housing offered for rent, with also a new more severe DPE depending on the heating method used (CO2 dimension).
Secondary residences
This is not a record, but the increase in the proportion of purchases of second-hand homes for second homes will also have marked the year 2021: it is 7% in the Century 21 network (+ 6.1% in volume compared to 2020). This is of course another consequence of the health crisis with purchases geared towards rural areas or coastal areas for those who can afford it.
What prospects?
After so many records, one can wonder about the outlook for 2022. ” The market is looking for a new equilibrium, I no longer forecast », Short cut Laurent Vimont. The manager still has his own idea: ” I can hardly imagine the prices increasing much in 2022 but if the borrowing rates remain around 1%, the million transactions are almost guaranteed. “. Be careful, however, any increase in rates would destabilize households (in priority the lowest incomes and young people) already penalized by the level reached by the prices.
Laurent Vimont is particularly worried about the increase in the personal contribution necessary to finance a purchase. With a repayment capacity of € 1,000 per month, even with rates as low as today (around 1% over 20 years), it is only possible to borrow € 215,000, compared to an indicative average amount of acquisition close to 247,000 € for an old property in France. There is therefore a lack of 32,000 € of contribution, which is not within the reach of everyone, especially the youngest …
Live better in your home
As for the continuation or not of the consequences of the health crisis, Laurent Vimont thinks that the dimension of better living in his home should continue: ” Additional m² are for example preferred to transport time and this choice seems sustainable because the French want to live better, in particular with an additional bedroom for their children or an office for teleworking. “.