Take advantage of the opportunities of Greater Paris

20 December 2019

Find a return in 2020, real estate investors would do well to target Ile-de-France. The economic dynamism of the region, the numerous infrastructure projects deployed to improve transport, the global attractiveness of Paris - reinforced by the 2024 Olympics - and the context of low rates are boosting a property market in Ile-de-France which has seen its prices progress strongly in 2019. An increase of + 4.5% on November 1, according to MeilleurAgents! This positive trend should continue in 2020. Demand from first and second-time buyers remains very strong, and transactions are very fluid. So much for the general panorama. Because Ile-de-France is anything but a homogenous and frozen market. The disparities are very high: if the prices per square meter crossed last year in Paris the symbolic bar of 10 000 euros, the apartments of the confines of the region are still negotiated around 2 000 euros per square meter. As a consequence of the Himalayan prices which are settling in most of the districts, investing in the capital is no longer really remunerative: the profitability of housing there stagnates at 3.3%, and much less in the upscale districts. Fortunately, Ile-de-France is not just about Paris and it is still possible to find attractive sectors in the first and second rings. Gross rental profitability can reach and even exceed 4%, even 5%. Be careful however, in many cases, an attractive facial profitability can obscure an insufficiently dynamic rental market. The vacancy rate will be high there, as will the risk of non-payment. As for the resale prospects, they will be difficult. The extension of public transport shuffles the cards Which municipalities to target for a successful investment? As always in real estate, location is essential. In Ile-de-France, the proximity and density of transport networks is the number one criterion to take into account. Ile-de-France residents are very keen not to exceed a certain travel time to their place of work. Tolerance does not exceed one hour door to door. In this context, the multiple sites of Grand Paris are shuffling the cards. Some municipalities will be opened up while others will lose their appeal. As a result, many localities, particularly east of Paris, are experiencing a rapid catch-up, like Aubervilliers, Bondy, Créteil, Montreuil or Neuilly-Plaisance, cities whose prices are increasing by almost 10% or more a year, more than in Paris. In these booming municipalities, buyers are banking on the benefits of new transport infrastructure, in particular the future Grand Paris Express lines which will gradually come into service between 2024 and 2030. Not forgetting the extensions of several existing metro lines or the project Eole which extends the RERE for 55 kilometers to the west, up to Mantes-la-Jolie. Transport alone is not enough to make an optimal investment. The targeted municipality must be chosen scrupulously for its characteristics as well as for its urban planning projects. The same goes for the selected district. Ideally, it should be commercial, with the main services within walking distance. In terms of finance, the level of local taxes will be closely monitored, as will the amount of charges. The state of the residence and the energy performance of the accommodation will also be examined. Several aspects to watch for investing in new buildings In the case of a new acquisition, it is advisable to be careful not to bet on programs intended only for investors, potentially sources of traffic jams for resale and often synonymous with poorly maintained condominiums. Be careful also to take into account, in profitability calculations, in addition to the tax reduction permitted by law, a resale hypothesis with capital loss if ever the investment horizon is short - it is rather advisable to keep the well for at least twelve years to maximize tax benefits in Pinel. Because new homes are generally 20% more expensive than comparable old homes. A price difference which will tend to decrease over time, in particular thanks to the revaluation of the old park. Last but not least, the surface area of ​​the property acquired should be selected according to the profile of potential tenants (students, young workers, families, etc.). And the amount of the purchase in new will not have to exceed 300,000 euros (and 5,500 euros per square meter) to take full advantage of the tax exemption. With regard to prices per square meter in Ile-de-France, studios and one-bedroom apartments are unsurprisingly the most popular properties for investors. Envoyer des commentaires Historique Enregistré Communauté

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