Longer selling times. Banks that are reluctant to fund first-time investors. Update on the new real estate deal in Nancy (54) with Jean-Marc Ostermann, of ORPI Stanislas Immobilier.
Attractive returns but fewer and fewer investors
located in Lorraine, Nancy stretches on the banks of the Meurthe A few kilometers from its confluence with the Moselle, a tributary of the Rhine. The present-day county of Meurthe-et-Moselle in the Grand Est can boast of its rich past as a duchy capital. It is worth turning around to enjoy its fortified gates and Stanislas Square Listed as a UNESCO World Heritage Site. This magnificent square takes its name from the last Duke of Lorraine, Stanislas Leszczynski, father-in-law of Louis XV.
Nearly three centuries later, Nancy has a population of just over 105,000. Above all, it positions itself as one of the main university cities in France with over 52,000 students. This asset is important to real estate investors who are looking for an attractive return. The only downside: the new inflection made by the banks dampens their enthusiasm. ” this year, Investors now account for only one in two sales, compared to two out of three, last year. Concerned about the risk of non-payment, banks tend to fund only parents who buy accommodation for their student child notes Jean-Marc Ostermann, president of the agency Orpi Stanislas Immobilier.
Banks warn against financing first-time investors
Until last year, first-time investors could easily get a mortgage. In a prosperous economic climate and in a period of low interest rates, rents for properties that are rented as a main residence or operate as seasonal rent covered the monthly payments. Today, the context has changed. Higher mortgage interest rates increase the number of loan rejections. For investors as well as for occupied buyers, inflation of just over 5% is eroding their purchasing power by affecting “ their remains to live », especially if wages do not increase proportionately over time.
It’s time to shop in a good month compared to last week
If we add the expected effects of putting energy-intensive housing on the market on the evolution of residential property prices in Nancy, time will be rather a relative disappointment. Result: Time to market is extended. Merchandise left within a week is extremely rare. From now on, it takes a good month. Any mistake will be punished. By default it means the ground floor on the street, and the lack of an outhouse of at least three rooms, a lot of work to be done. With material shortages driving up the price of supplies, potential home buyers are less inclined to renovate an apartment or house.
Real estate prices in Nancy
In the historic heart of Nancy, a five-minute walk from the famous Place Stanislas, rue des Sœurs Macarons, apartment of 75 square meters located in 1Verse The floor of a building with a stone facade dating back to the 18th century, signed for €200,000, or an average price of just under €2,700 per square metre.
In the République neighborhood, near the TGV station which is Nancy 1 hour 40 minutes from Paris, an apartment of 42 square meters, located in a beautiful building, was bought for 120,000 euros.
Also in Nancy, townhouses are still rare. Of course, amateurs demand to have a balcony and / or garden. Near Saint Mary’s Park – in the southwest of the city – a six-bedroom house has found a buyer at €565,000. Beautiful result of this house built in 1991, renovated in 2017 and adjacent on one side. This sought-after area by families will boost its popularity with the upcoming opening of the only hydro and thermal establishment in France, located in the heart of the city.
Oberlin should benefit from the access of the future Judicial City
” With the arrival of the Judicial City of Nancy on the disused Alstom site declared in 2025, the Oberlin area should benefit from the Batignol effect which will attract legal and paralegal professionals. Expected Jean-Marc Ostermann. For the municipality, he called this sector to become the first real ” ecozone In Nancy it will radiate throughout the Meurthe Canal strip. Ultimately, this process must accommodate a mix of uses, audiences, activities, and functions: residential, economic, and cultural. Another urban planning project: launching housing units from A A city between generations To accommodate students even dependents. That is, on the futuristic wasteland of the current site of the Central Hospital.
There is no doubt that Nancy is a mobile city.
Many thanks to Agency Director, Jean-Marc Ostermann, for sharing his analysis of Nancy’s real estate market with MySweet’immo journalists.
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