“In France, everyone wants to buy an apartment and people can’t do it,” notes the president of the Altarea group

Faced with the housing crisis, Alain Taravella, founding president of the Altarea group of developers, is offering apartments for first-time buyers, accessible, he promises, at the “price of rent”, “without notary fees”, “without intermediary costs”. He details this proposal on Wednesday.

“Overall, the housing crisis will last a long time, but we can fix the housing crisis a little inside“, says Alain Taravella, founding president of the Altarea group, Wednesday June 5. Altarea was founded Just 30 years ago, it is today the number 2 French real estate developer, a very struggling sector. In new construction, sales were halved in 2023 and things have not improved since the start of 2024. His group promises housing to first-time buyers who are without security deposit, without initial contribution, he details this offer on franceinfo.

Franceinfo: Nexity, which is your major competitor, will cut 502 jobs. No social plan at home?

Alain Taravella : We do not have a social plan. We adapt according to people’s departures and internal mobility.

You make a proposal to first-time buyers, unhappy candidates for property, who are without a security deposit, without an initial contribution, you promise them: no notary fees, no interim costs, therefore no reimbursement before moving in. How does your system work?

It works very simply. We started from customer needs. First, there is a paradox in France, everyone wants to buy an apartment and people can’t do it. So, we have to start from the root of the problem. We started from the land, from the costs, I started from what people can pay.

“I started from the postulate that, to become owners, French people could pay roughly the price of rent.”

Alain Taravella

on franceinfo

And so, for the amount of rent, you become the owner. You do not have any personal contribution because you do not earn a lot of money, you do not pay interim fees, you do not pay notary fees, all these fees which increase the price of the apartment and Cogedim offers you an apartment. How do I do ? I make an apartment that is well designed and we reduce all costs, the cost of land, the cost of construction, while maintaining quality, our margins, our operating costs. And we succeed.

Are the customers there?

Customers are there. We launched a first operation in Villeneuve-la-Garenne (Hauts-de-Seine) where we sold 100 homes in one month. It’s still not bad in these times. And we sell to young people, to single-parent families who didn’t even hope to one day be able to buy an apartment. Yes it’s possible. Today, there is state aid available, including a zero-interest loan.

“We negotiated with our banks so that they would make subsidized loans.”

Alain Taravella

on franceinfo

The end result is that we build an offer with a credit which is on average, taking into account zero interest loans and loans at normal rates, around 1.50. It is reserved for first-time buyers, that is to say those who buy an apartment for the first time. And right now is the time to buy, the credit conditions for these people are ideal.

Is a permanent contract required, or can self-employed people and young people on fixed-term contracts apply?

It is still based on a loan agreement from the bank. You have to be able to pay. In France, there are regulations so the two of you earn 3,000 euros, a little more than twice the minimum wage, you can pay 1,000 euros. Of course, you have to be able to pay the monthly payment, but it is open to many people and in particular to self-employed people who can prove their income. It’s always the same, banks lend to people who are able to repay.

“Even if the rates are low, you have to be able to repay.”

Alain Taravella

on franceinfo

You want to market around 1,500 homes this way. What do you hope for your group? Is it a question of survival?

No, it’s not a question of survival at all. It’s a question of continuing our development. You know, the vocation of a group like ours is to house French people. We must always start from the first intentions: we must house the French and the French need to be housed. So you have to be able to create the product that works. And this product, as it is designed, allows us to make money. It’s not a question of survival, it’s a question of development and satisfying our customers.

The European Central Bank could cut its key rates by a quarter of a point, which could lead to lower borrowing rates. Is this good news?

It’s good news. We must put things into perspective: the ECB increased its rates from zero to 4% in six months. So, there, it drops by 0.25, so much the better, it will follow, that’s good. But today, our offer does not depend on the decisions of the ECB. We have the means today to offer low rates.

The developer crisis, the housing crisis, is starting to be behind us or is it not over?

I think the housing crisis is not behind us. There are plenty of reasons for this crisis and there are plenty of solutions.

“The main solution is that rates really fall for everyone and not just for first-time buyers.”

Alain Taravella

on franceinfo

So, it’s going to be a long crisis. During this long period of crisis, there may still be opportunities for people who are targeted for zero-interest loans, which is still an absolutely considerable advantage. And for them, we will be able to do things. The housing crisis will last a long time, but we can fix the housing crisis a little inside.