News of the real estate market in the Pays de Gex
A market that holds its own
980,000 transactions took place in 2020, the year of Covid-19. That's less than the record year of 2019, and yet... The number of transactions in 2020 is equal to that of 2018 and is among the best results of the decade.
What about the Pays de Gex ? Are we seeing such good results in the Gessian market? To find out, you have to look a little across the border and remember the adage : " when Geneva coughs, the Pays de Gex catches a cold". The French framework (taxation, credit, etc.), but also the performance of the Swiss economy therefore determine the good health of the Gessian market.
According to a study by Swiss Re, Switzerland has the strongest resilience in the world (after Canada and Finland) to the economic impacts of Covid-19 ; However, there is unemployment among cross-border workers working in the hotel and construction sectors.
On the French side, the new finance law maintains the Pinel scheme and preserves a high volume of new car sales in the Pays de Gex. The French economy is still holding its own and buying real estate – accompanied by an agent – appears more than ever to be a safe haven.
High demand, low offer
Continued customer confidence and easier access to low-interest loans point to positive market momentum in the near future.
The legislator wants to support demand with low interest rates. The High Council for Financial Stability (HCSF) authorises borrowing over 27 years - compared to 25 years previously - and to have a debt ratio of 35%, compared to 33% previously.
As a result of Covid-19, demand has recently increased for garden levels and houses of the same volume as type 4 and 5 apartments. Buyers are also looking for better access to transportation.
For the supply side, the new urban planning rules of the PLUIH - planned over 10 years in each municipality - limit for the first time the number of new housing constructions per year. This reduction in supply will create an imbalance for several years with rising demand in a context of demographic growth in the Pays de Gex, and therefore a rise in prices.
A not-so-bleak future for real estate professionals
The Gessian market is therefore showing several signs of good performance. Real estate professionals (including ourselves) anticipate prices to stabilize or even fall slightly depending on how the economy evolves. However, the period is seen as favourable by real estate agents thanks to attractive credit rates and a strong economic recovery expected once the crisis is behind us.
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Assistante de direction
Posted on 18/02/2021 by
Marie MASSON
