"One apartment bought, one apartment to win": developers multiply discounts to attract customers

Competition: "buy one apartment, win one apartment". This is the commercial operation launched at the beginning of November by the developer Interconstruction.

For the purchase of a property, from a list of around 400 eligible apartments, all in Ile-de-France, the future owner "will participate in a draw to win" a studio with parking in Drancy (Seine-Saint-Denis).

"Rather than trying to sell off our stock, we are trying to bring a more positive note to attract customers," explains Antoine Guillorit, strategic director of the Paris region developer, who admits the marketing ploy is being used to gain notoriety.

"For the same budget, either I offer 1.500 euros to a hundred families, but that won't change their lives, nor the amount of the monthly payments" of their loan to become a homeowner, "or I offer an apartment to a family," he says, considering that the second option is "nicer."

The commercial offer is relayed on the private sales platform Showroomprive.com, and is accompanied by a furniture purchase voucher to perfect the visibility of the operation.

Interconstruction is far from being the only developer launching operations to attract new clients, in a context of serious crisis for the new construction sector, caused mainly by the increase in construction costs and the collapse in demand.

Although reservations for new housing made by individuals increased slightly in the third quarter, they are still at very low levels and housing sales continue to fall, according to data from the Ministry of Housing and Urban Renewal.

From April 2022, accommodation bookings began to fall and have been almost halved in a year and a half.

Developers are struggling to sell off their stock and have therefore halved the number of homes put up for sale, which fell to its lowest level since at least the end of 2018 in the third quarter, at 13.947.

Over the past year, the number of reservations has once again exceeded the volume of housing sold, which is gradually reducing the stock to be sold (-9,6% in one year).

Kitchen offered

And to sell these homes, some developers are offering discounts of several thousand euros... or even offering a kitchen for each reservation, as Kaufman & Broad did last week.

Private real estate sales are also flourishing: in September, the start-up offering new real estate, Handee, organized a private sale via the Veepee platform and offered "more than 100 properties" and "discounts of up to 89.000 euros".

Payment of notary fees by the developer has become widespread. Large groups in the sector offer it, like Nexity, which has been offering it to first-time buyers for two years.

Financing offers have also become more widespread: many developers have negotiated bank loan conditions for their clients with banks.

Altarea, for example, "offers preferential credit access conditions and negotiated rates" for first-time buyers who combine the zero-rate loan, available only in tight areas in 2024, and the absence of a personal contribution required.

"We are therefore offering to become the owner of an apartment with monthly payments equivalent to rent, without a deposit and without paying before moving into the apartment," describes Alain Taravella, president of Altarea.

His company has also worked to limit the cost of each home as much as possible: every square meter must be used wisely, construction costs have been reduced, as have Altarea's margins.

To adapt to the current tight market, Altarea's real estate projects have been "reworked, unraveled and then reconfigured, or stopped and then resumed," explains Vincent Ego, general manager of the group's Promotion division.

"Some projects have been abandoned because they were designed several years ago and no longer correspond to the needs of the current market," he adds.

Given the current slow pace of creation, the Federation of Real Estate Developers fears a housing shortage in five years.

Illustrative image of the article via Depositphotos.com.