While the real estate market shows signs of fragility across France, the shores of Lake Geneva seem to escape this trend. Buyers do not seem discouraged by a tense economic context. An overview of the situation with David Jaillet, Director of the Imogroup agencies in Thonon and Evian.
The Chablais, a privileged area to live and invest
The Chablais stands out for its exceptional location. The proximity to Switzerland brings to the Chablais both professional, tourist, and economic radiance. Communities such as Thonon, Sciez, or Évian benefit from a privileged environment, close to the lake and mountains, which offers a wide range of activities and leisure, all year round.
Barometer: real estate in Thonon les Bains and Évian
In value as in volume, the market seems imperturbable, according to David Jaillet: “We observed a real dynamic in 2022, with extremely sustained demand. 2022 was a record year. An exclusively mandated property priced correctly sells easily within four weeks.”
It is clear that the market is undergoing transformation, mainly due to inflation, the increase in interest rates, and constraints related to wear rates. “Some buyers, previously eligible for financing, have been refused their loans or have obtained them under less favorable conditions than they would have in 2021. Payments are then higher, or personal contribution must be increased.”
Even though we talk about rising rates, it is still important to clarify that they remain at a significantly low level. David Jaillet specifies that “rates should stabilize around 3% in the coming months. Therefore, we encourage buyers and investors to continue with their projects.”
What about prices?
“Against all odds, prices remain stable.” Comments David, before continuing “Yet, one might tend to believe that they could drop, if we correlate inflation and the cost of mortgage loans. For now, this is not the case, the market remains dynamic against a demand that remains strong. We just have to wait to see if the trend changes in the coming months.”
Recent apartments and individual houses might maintain their price levels, while housing built before the 1980s might see their prices drop. Indeed, buyers are increasingly vigilant about the green value of housing, which could certainly lead to a decrease in interest, followed by a price drop.
