photo : journal de l'agence yann jehanno

“The question mark today remains the position of the banks and the energy renewal schedule,” Yan Jihanu. Agency Diary

Beyond the historic 2021, 2022 looks like a resilient year… Jan Jihanu, President of Laforêt Network, takes stock of the first half of 2022, market trends and forecasts for the coming months in this interview.

JDA: What conclusions can you draw from the first half of 2022?

Yan Jihanu: Contrary to all expectations, the real estate market has held more than steady and has continued to this day at a very intense and persistent pace. Admittedly, in one year there was a slight decrease in transactions of 2.7%, but this is still insignificant compared to 2021, which was a historic and exceptional year. The latter was already the year to catch up with all the projects that could not be implemented in 2020 due to restrictions and the epidemiological situation.

JDA: How have prices evolved?

YJ: Prices are the result of a market that operates according to the classical laws of market economy, that is, with supply and demand. With demand 2% higher than it was a year ago within the Laforêt network, and therefore very active, and supply continuing to fall with a 2% drop, there is very strong pressure on prices which are trending up at a national level of about 5.8% and even 8% in Areas that continue to carry the real estate market with homes. After several months of continuous capital decline of -1.5%, which can be compared with -1.7% of 1Verse Quarter of 2022, prices and activity in the recovery in Paris. So it is not unlikely that prices will return to a certain level of equilibrium by the end of the year.

Very: Is the current situation starting to affect the real estate market?

YJ Elections, whether presidential or legislative, or the war on Europe’s doorstep had no effect on the market in the first half. Thus, the high interest rates encouraged the French to speed up their real estate project. But it is clear that we are now in the second half of the year, and there are some concerns hanging over the property market. This is especially the case in the case of real estate finance with increased interest rates on one side, the Governor of the Bank of France who has clearly demonstrated his intentions to put them back at the classic level between 2 and 3%, and on the other side the terms of granting loans that have become more stringent with the recommendations of the HCSF Which today is more restrictive for more modest families, as is the case for young workers under 35, who have little to no contribution.

JDA: Will the upcoming new energy regulations really have an impact on the real estate market?

YJ: We’re seeing a 9% increase from 1Verse Semester 2021 from the sale of properties that are energy sieves that will not be allowed to rent soon. Some owners, who do not want to do the big renovations sometimes, are in a hurry to offer their homes for sale. On the other hand, as more and more French people are concerned about increasing their energy bill, the energy label is really paying off and has price ramifications. At a time when energy renewal is not clearly facilitated in the face of a large increase in raw materials and a smaller energy renewal sector, the sword of Damocles dominates the real estate market. The climate and resilience law schedule, lease stock replenishment and, as of September, energy regulatory audits on sole proprietorships are now untenable. So players in the real estate sector are waiting for a reaction from the new housing minister attached to the Minister of Environmental Transition and assistance in line with the challenges of the French who will have to renovate their homes.

Very: How do you see the development of the real estate market in the coming months?

YJ: Today we are in a market where demand is clearly higher than supply. The unemployment rate is also at a low level and the financing conditions, for profiles that can borrow, are still very attractive. Finally, since the health crisis, the French have always had the desire to be somewhere else, to have a house with a garden or an apartment with a balcony, but also an extra room to be able to work remotely. Even without a crystal ball, all these factors indicate that the market remains active in the coming months. The question mark today remains the position of the banks and the energy renewal schedule, but if these two topics are approached in a constructive way, I am convinced that 2022 should end among the best years in terms of transactions.

JDA: What are the goals and projects of the Laforêt Network for the second semester?

Yan J: We want to continue to grow our network of 700 points of sale with the opening of 95 new branches. To do this, we need to find workplaces, ensure our franchisees are funded and work to bring their agencies up to standard. Like the entire economy today, we are also affected by the rise of raw materials and we must support franchisees in their development. Our second goal is to continue diversifying our business that we already started with the opening of the Co-Ownership Guild 18 months ago. Laforêt now has 30,000 sales per year, 20,000 rentals, 60,000 properties under rental management and several thousand housing units. Finally, we are hiring thousands of jobs to support our development and improve the experience of consumers who pass through Laforêt network agencies.

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