Real estate professionals are hopeful for an imminent recovery in the real estate market, but are also facing challenges as some properties are not finding buyers. According to a recent study by Homeloop, buyers are now visiting properties twice as much before making a purchase compared to twelve months ago. This increase in visits is driven by a fear of overpaying and a preference for quality properties in desirable neighborhoods. Properties in problematic areas or with noise issues, such as ground floor or first floor units, are struggling to sell.
In Paris, for example, a high-end family apartment near Avenue Victor-Hugo has been on the market for several months due to being a first-floor unit, despite having a reasonable price for the neighborhood. Similarly, a charming third-floor unit in the 10th arrondissement is facing difficulties due to its proximity to the noise from Gare du Nord. Another trend observed by professionals is that buyers are now avoiding properties that require renovation work. The increasing cost of renovations, particularly in houses from the 1950s to 1980s, is discouraging buyers, leading them to opt for move-in ready properties instead.
Furthermore, many of these properties in need of renovations are also energy inefficient and labeled as F and G in energy performance certificates. These properties may be removed from the rental market starting in 2025 if no improvements are made. To sell these properties, sellers would need to significantly reduce prices, which many are hesitant to do. Some experts suggest that a price reduction of up to 20% may be necessary to make these properties more attractive to buyers. Overall, properties with poor energy performance are facing additional challenges in finding buyers.
Despite these obstacles, real estate professionals remain optimistic about a potential market recovery. They believe that as long as properties are priced appropriately and located in desirable areas, there will still be demand from buyers. While some properties may require adjustments in terms of pricing and energy efficiency, there is still confidence in the resilience of the real estate market. As the market continues to evolve, professionals are adapting their strategies to meet the changing needs and preferences of buyers in order to facilitate successful transactions.
