In 2024, faced with a difficult real estate market, future owners are asking themselves: invest in the old property or turn to a new one? Learn the pros and cons of these two options while taking the economic situation and trends into account property current.
2023: A key year for the real estate market
The year 2023 was a period of transformation for the real estate market in France. There has been a significant drop in the number of real estate transactions, which are falling even more from one million to 890,000 saleswhich is a decrease of 20% compared to 2022. In addition, property prices in France saw a slowdown in 2023.
For example, in Paris, the price per m² of old housing fell below EUR 10,000. In addition, the combination of restrictions imposed by the DPE reform and a reduction in the turnover rate of goods led to a reduction 18% of the offer rent, causing a rent increase of 3.2% over a year.
What is the real estate situation for 2024?
2024 comes with its share of complications for real estate investors. Increase in loan rates, graduation from 1.06% to 4% between June 2022 and September 2023, significantly reduced the borrowing capacity of buyers. This situation was accompanied by a slight drop in real estate prices, especially in cities such as Paris and Lyon. However, this decline does not fully offset the increase in rates and creates an atmosphere of uncertainty for buyers. It should be noted that despite this increase, it is becoming more prudent to consider buying housing for a purpose become an owner rather than deciding to rent.
Investing in the old: Its advantages
Old properties, often located in city centers, can impress with their historical charm. These accommodations often offer a unique character with old architectural features such as chimneysof pressingsor even wooden beams. However, these benefits can be offset renovation costs sometimes high, especially to improve energy efficiency. In addition, notary fees are traditionally higher for the former between 7 and 8%.
Buy a new one
The new properties in turn offer advantages in terms of energy efficiency (designation A to C) and reduced notary fees (between 2 and 3%). Manufacturer’s guarantees and the possibility to benefit from tax regimes such as Pinel’s law they are also attractive for rental investments. However, the cost of acquiring a new property generally remains higher and the modern style may not appeal to everyone.
Use a real estate agent?
In this context, support from a real estate agent perhaps important. It can help buyers realize their buying wishes in the 2024 market, guide them to the best financing options and advise them on choosing between old and new based on their personal situation and their investment goals.
What choice for 2024?
In the end, the choice between investing in old or buying new in 2024 largely depends on individual priorities, budget and long-term goals of each buyer. The current real estate situation, characterized by high credit rates and fluctuating prices, requires in-depth reflection and good planning. Real estate broker can prove to be an ally in this process, offering expertise and personalized advice for the best decision.