PROPERTY: Volume record transactions, still low interest rates, property prices in Caen are starting to rebound in recent months. A trend that is not expected to influence the course of the year 2018.
Prices rose in 2017
An increase of 3.8%. This is the number to remember the real estate market in Caen in 2017. In Caen, having fallen considerably in recent years and even won over the years as 2014, the price per square meter is rising again. On the territory of Caen and the neighbouring areas, prices of old houses averages 195,000 € (per 100 m2 of living space and 570 m2 of land).
The profile of buyers change
This is not new but the profile of buyers change. In question, changing the basic family structure. President of the Chamber of Notaries of Caen Romain Lecordier:
“We see more and more blended families that will need additional rooms to accommodate everyone, it does not necessarily seek the same property before then. It also has a real influence on the number of transactions. At the option of separations and new unions, we move more.”
2017, a historic year
At the local and national levels, 2017 was absolutely exceptional for the property market. Nationally, the number of transactions should graze million. This is almost double the volumes recorded in some years since 2008. As a result, demand is very strong, prices begin to rise mechanically. For me Lecordier: “If we look at how real estate has evolved over the last 20 years, we can say that prices shot up between 1998 and 2007. And in 2008 there was the crisis that we know and market stalled. Prices have gradually declined, many times. Today, we can say we returned at prices equivalent to those of 2008. In fact, there is a recovery at the national level, and the market follows. “
Caen not accessible to all
In Caen, some neighborhoods are still popular, it is the very center yet located near the city-hall and the Place Saint-Sauveur. However, prices are high and there there are few first-time buyers, except on apartments. Some neighborhoods, including right bank began to attract buyers. In immediate vicinity, some municipalities really are spared the game. This is particularly the case of Mondeville, very accessible in terms of price, well endowed with services, shops and amenities and deemed to be a very advantageous tax for households (compared Caen rightly or Herouville Saint Clair for example). So, what is the rush is for buyers. Especially since as explained Lecordier me :
“In Real Estate, Touj ago bear what is called a snail effect. If prices rise in central Caen, buyers are shifting to the suburbs. This mechanically pushes up prices in these areas, and access to basic services then go a little further, for example in the nearest town.”
Banks who play the game
If transactions are numerous, it is also because the interest rates of bank loans remain very low. For young families, there is no anxiety to borrow over 20 or 25 years to acquire a property, because the repayments are sustainable. For investors, it is also interesting health. The money is generally cheap at the moment, the real estate investment is more than ever the safe haven.
The deserted countryside
And if cities were gaining population in the coming years? This is the challenge as much as the promise of the elected urban areas. The real estate market seems to prove them right because when the real blooms in city property located in the countryside tend to be neglected:
“People will less and less to the countryside. First, because it becomes possible to buy close to the cities, but also because the costs and transportation issues are a major issue in the project of those who want to buy. A good public transport links, it has become a very important asset of attractiveness, and this is clearly an issue that is often raised by families.”