Not a day goes by without it being talked about housing crisis. We need to talk about it and identify its causes in order to treat it.
It is up to professional actors and public officials to look at things squarely. Besides, what would be the point of hiding your face? Most French people understand the difficulty of finding housing: access to credit buy a new one or in the current situation, obtaining a lease is a challenge.
The market is down by a third and this reality is forcing itself whether we acknowledge it or deny it. And more and more entitled voices are recognizing this.
Adding to this economic slowdown are the challenges of historical change to meet, combat climate change and protect the environment, or cope with the reduction in the need for offices and businesses. In short, everything conspires to lose power and make reference points wobble.
We can fear two main consequences of this clear awareness of the crisis and its polymorphic character. We can first fear the despondency and resignation of some professional actors who prefer to end their activities rather than develop their practices, who will not have the audacity to diversify, to expand the offer of their services.
Will real estate agents who are suffering from a reduction in the volume of transactions and who have not created a managerial activity finally be able to step in? Will independent wealth management advisers who have made a living marketing new tax-exempt properties be able to open up to new products such as life annuities, managed residences or non-real estate assets?
Will the developers who built on the plots that the developers knew how to build on, add to, extend the existing one? Will individual homebuilders themselves take this path?
The real estate sector offers advantages to be aware of
The second consequence concerns talent renewal. Will young or old people who want to enter the real estate sector not let circumstances deter them from realizing their dream?
Do they decide that it is better to delay or change direction completely? For several reasons, this career crisis must not occur. It is necessary that the person who is attracted to real estate does not come to the conclusion that the crisis closes his future. And this is thanks to five great advantages of this industry, which influence the training of its professions.
The first advantage is the adaptability of the real estate economy. Activities that are clearly demonstrated today are flow activities.
He borrowed the term from economists who distinguish it from stocks. Existing real estate transactions, new housing sales and construction are suffering from household insolvency due to inflation. Many fewer buyers and no restart of construction for manufacturers because demand is no longer at a sufficient level.
We will learn to live with inflation. Prices fall so that the offer corresponds to the financial possibilities of buyers. Interest rates, which have risen sharply, are stabilizing. Material costs too. Wages are rising and partially covering the overall increase in prices.
In addition, even if the state’s awareness is delayed, support and enforcement measures cannot be failed. Some are already taking shape. There is no reason when you commit to a study cycle of one year, two years or more to forgo a transaction. At most, you should not rely exclusively on companies practicing one of her professions to welcome you during the work-study period.
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The second advantage is the solidity of the inventory professions, i.e. building management. They are certainly affected by the economic weakening of households that are struggling to pay rent or co-ownership, but they provide a basic service that residents cannot do without and that does not suffer from blackouts.
Property management, rental management and condominium management, asset management, real estate management and building management are not subject to the effects of economic disruption like sales or construction professions. Big owners, land companies or even management companies of SCPI, have the same stability of their activity. These professions are under pressure and their needs are significant.
The third advantage is the existence of a sub-sector of non-market housing, public housing, which is also called social housing or HLM housing. The HLM world operates with public or quasi-public funds allocated to it, and as its utility continues to increase in difficult economic times, it remains supported in times of inflation or shrinking state budgets and local communities.
In short, its activity is not dependent on economic circumstances. In addition, the world of HLM developed significantly in the 1980s and 1990s, and the age pyramid of its executives is such that a significant number of them are retired: the onset of succession is essential, and social housing organizations are actively recruiting.
The fourth benefit: real estate is part of a broad ecosystem that includes financial institutions, insurance companies, loan and insurance brokers, real estate software publishers, and other services. These related professions use the skills of graduates of real estate schools.
And finally, the last advantage is that the real estate sector is experiencing two profound changes, digital and environmental, which present challenging challenges. Companies and institutions look through Chimène’s eyes at young professionals, both digital natives and dedicated environmentalists. They cannot do without their commitment, which infects and converts teams on the ground.
In short, the crisis affecting reality today has no reason to turn into a talent crisis. The challenges of the sector must continue to inspire career paths that never disappoint those who lead them.