Legislative elections also affect the real estate sector

These elections and the various proposals from the candidates are creating a wait-and-see attitude in a sector that has already been suffering for several months and which was only just beginning to recover thanks to falling rates.

The legislative elections, the second round of which will take place on Sunday, July 7, are likely to impact the real estate sector. The SeLoger and Meilleurs Agents networks have just published their national barometer and it shows that the recovery was happening slowly. Between 2019 and the beginning of 2024, potential buyers had lost 20% of their real estate purchasing power, the equivalent, on average, of 20 square meters. Four years ago, they could afford an average of 96 square meters compared to only 76 square meters today. But the trend was reversing, since April, in three months, buyers had recovered 2 square meters of purchasing power. With the uncertainty surrounding this voting period and its consequences, there is a risk of a slowdown in the coming weeks.

Many households are likely to postpone their projects. Apart from those who are really forced to move, the others will tend to wait, to see how the situation turns out and if prices will drop. Also wait to see who comes to power, because there are measures in the programs that may be interesting, depending on the profiles. The New Popular Front, or the National Rally propose to extend the zero-rate loan for young people. When Gabriel Attal plans to lower notary fees and create an energy renovation fund to help renovate 300,000 homes.

One thing is certain, right now, it’s very hard for tenants. According to Immodirect, a specialist in rental management, between 2022 and 2024, in tense areas, there has been a very sharp increase in rental applications. When we had 10 applications on an advertisement two years ago, today, we have 30, because there are fewer properties on the market and owners are asking for numerous guarantees. Here too, landlords are waiting to see how taxation will change with the next elected officials. Will the Kasbarian “anti-squatter” law, intended to protect against unpaid rent, be maintained or repealed as requested by the New Popular Front? So many questions, linked to this election, which have direct impacts on the daily lives of the French.