Rental real estate still popular with the French

All of this is quite disappointing, especially since it is all those involved in construction, including financing and promotion, who are penalized.

Especially since the crisis that rental investment is going through is multiple. First of all, the backlash effects of the pandemic are being felt when it comes to business volume. After the difficulties in transporting raw materials, shortages and postponements of schedules, the projects had to be completed but the order books were empty. Then, the savings invested by households for three years have not seen any outflow in favor of real estate. Or so little to meet a possible need for personal contribution in the event of credit, when possible. Finally, the ZAN system, which aims to put a stop to the artificialization of land, raises fears of a severe contraction of available surfaces. A law is in fact blind, in the sense that, following excesses, land potential can no longer be exploited. The “ugly France” that we now talk about so often, with its commercial zones made of metal structures and its disproportionate parking lots cannot be enough to lock down an entire urban planning policy. Some nuances would be desirable based on the experience of the Regions for example.

Central vision of the property

Therefore, we can ask ourselves how to respond to student housing problems, the need for senior residences, city center real estate without motorized travel if we only focus on the former? Will our country abandon this central vision of property so appreciated by our fellow citizens? We don't think so because it has always been a heritage tool, particularly for transmission between generations. But also a legitimate aspiration to access it when you are a tenant.

However, rental real estate is esteemed by the French and has a good image. Indeed, according to a recent survey carried out by Louis Harris Interactive for Maslow on October 10, it reveals that 77% of respondents believe that it is a good way to invest their money. And in the same proportion, to generate additional income.

However, the accessibility of such an investment is widely discussed in its practical application by consumers who find it difficult to find a property, finance it and manage it. Furthermore, a third of them even share the feeling that “rental investment is more difficult to make than purchasing your main residence”. It is therefore a real challenge to which CNCEF Immobilier intends to respond. In a market which is currently experiencing a phase of transition and profound change, the general public must be able to rely on and be supported by real estate investment professionals, trained, qualified, experienced and respecting an advisory approach. But also by popularizing the profession of real estate investment advice.

The question of location

In addition to the economic situation and the perceived complexity of rental investment, the French however have a fairly good perception of the location of the housing in which they want to invest. A third favor the center of a large city or a medium-sized municipality, taking into account mobility and location issues. Finally, climate issues weigh heavily on investors’ thinking. The energy criteria of housing currently on the market prevents them from investing in other properties, particularly new ones. Rental real estate therefore has major challenges ahead of it that the State should take into account. The dynamics of one of the flagships of the French economy and more generally of a value chain which is suffering unnecessarily are at stake.

Tribune by Jean-Paul SERRATO, President of CNCEF Immobilier (LinkedIn).