This is the time to invest in real estate, and INSEE says so

If we are to believe the predictions of the National Institute of Statistics and Economic Studies, investing in real estate is the best thing to do.

Student, employee, retiree… Many French people are struggling to find housing as early as 2024. In most major cities, rental requests far outstrip housing supply. However, this bad news may hide a great opportunity.

If the number of renters is increasing, it is because the number of houses in France will explode in the coming decades. According to an INSEE study, France should have 4 million additional households by 2050. An average of 133,000 new families settle in the country every year. The development is partly linked to demographic growth, and above all a tenfold increase in the number of single-parent families and people living alone.

The problem is that the number of homes available for sale and rent is not growing fast enough. Two phenomena illustrate this. On the one hand, new housing construction is becoming increasingly rare (it was halved last year), effectively reducing the number of housing units. On the other hand, fewer and fewer homes can be legally rented.

In question, the 2021 law severely limits land consolidation and therefore the number of building permits issued. The objective is to halve the rate of artificialization by 2031 and reach “zero net artificialization” in 2050. As a result, buildable areas are becoming scarce and building plots are becoming increasingly smaller and more expensive. Conclusion: Demand will explode in the coming years, and supply will not follow. A boon for real estate investors?

In addition, widespread implementation of energy performance diagnostics (DPE) will remove millions of homes from the rental market, making supply even more scarce. This index makes it possible to assign grades from A to G to houses and apartments, defining the quality of their thermal insulation. In 2025 and 2028, F and G rated residences will be banned for renting, respectively. Then in 2034 it will be the turn of E rated houses. In response, many owners are trying to sell their properties because they cannot afford to rent them out in the coming years. .

If the situation is a cause for concern, it can also be an opportunity to grab great opportunities in the real estate market. In fact, more and more homes are being put up for sale because they can’t rent. Thus, more and more offers are coming in the real estate market these days. A trend that is leading to a decline in property prices in the region.