The French real estate market has been going through a deep crisis for two years, fueled by soaring prices and difficult access to credit. Faced with this critical situation, François Bayrou, the Prime Minister, presented a set of measures aimed at revitalizing this vital sector for the national economy. Focused on tax incentives, increased support for the construction industry and regulatory adjustments, these proposals seek to respond to current challenges with respect to social and environmental issues. While these initiatives raise hopes for recovery, they also raise many questions about their effectiveness and implementation.
Real estate support: an ambitious measure
In his general political speech, François Bayrou revealed a number of strategic measures to revive the loss-making real estate market. Among them, the creation of 15,000 student accommodation per year over a three-year period stands out as a direct response to the critical housing shortage. The prime minister has emphasized the importance of the initiative, saying it aims to “restore confidence in younger generations and ease the pressure on university towns”.
To boost the affordability of real estate, the government has also announced the extension of the Zero Rate Loan (PTZ). The aim of this adjustment is to integrate more first-time buyers with a particular focus on rural areas which are often neglected. In addition, mayors will be offered a financial incentive to support “moderate densification” of the area. This approach aims to respond to growing housing needs, but also to limit the negative effects of urban sprawl with regard to the harmonization of urban planning and environmental sustainability. These measures therefore reflect the declared desire to revive the sector in crisis with the aim of solving social and territorial problems.
Uncertainties and challenges to overcome
In addition to measures aimed at reviving the real estate market, François Bayrou also mentioned a possible increase in notary fees. The proposal, immediately criticized by industry experts, is seen as a potential obstacle to transactions. According to a spokesman for the National Real Estate Federation, “it’s a decision that runs counter to the stated goal of restarting the market.” In a situation where interest rates continue to rise, this measure risks exacerbating difficulties in accessing property for many households.
Conversely, exempting new housing from inheritance tax could represent an important lever to support construction. This initiative aims to stimulate demand in a key market segment to provide opportunities for new buyers. However, its effectiveness will largely depend on the efforts of local authorities to adapt the infrastructure and meet the needs caused by the increase in construction. In this context, the main challenge remains the balance between market support and operational feasibility, which will require close coordination between public and private actors.
These measures raise questions about their budgetary feasibility and their ability to sustainably transform territorial dynamics. Although they hold hope for revival, their effectiveness will depend on consistent implementation and close consultation with local stakeholders. In a market weakened by structural imbalances, these initiatives represent a promising starting point. However, they must be accompanied by a long-term vision in order to fully meet the expectations of households and professionals in the field.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
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