Real estate in Turin: prices continue to rise

The doubling of mortgage rates, which are now close to 2% in the second quarter of 2022, has a very large impact on the demand for real estate in Turin. The higher cost of silver overall reduced the number of potential buyers by 30% versus 2021.” Two years of the health crisis have been exceptional for real estateExplains Vincent Briand, President of FNAIM at Indre-et-Loire. It led to the popularization of remote work, the first result of which was to strengthen the enthusiasm of the French for the stone. Thus, the year 2021 reached a record with 1.2 million sales of merchandise in France. We went back in 2022 to a number of transactions comparable to 2019 in Turin “.

First-time buyers are the first to experience the new banking situation. For them, higher interest rates are accompanied by a tightening of the conditions for granting loans. Evidenced by the return to the agenda of the debt limit of 30% of the resource. In this context, rental investors, real estate investors or individuals, who represent 90% of the market, have significantly restricted their investments. For these two types of buyers, hyperinflation since the end of 2021 is finally acting as a deterrent to the buying process.

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The only sector where the demand is not declining is the real estate development of new housingVincent Briand confirms. And with good reason, the shortage of this type of real estate, due to the scarcity of land in Tours, has increased even more with the shortage of raw materials in the construction industry. For the vast majority of inventory, lower demand in Touraine will include all types of housing, primary and secondary, as well as urban, peripheral and rural. Marie-Sophie Brocas Beszault, president of the Interdepartmental Chamber of the Loire Valley, confirms this trend. Amboise, Loach and Chinon, which concentrate a large percentage of second homes in Indre-et-Loire, have seen a significant drop in demand since the start of the year.the notary identifies in Roussier in Touraine, a small rural town north of Tours. However, the supply is still insufficient for major and secondary homes. This gap has the effect of maintaining a high level of real estate prices. »

Prices don’t go down

Because it is already a paradox of the real estate market in Tours since the beginning of 2022. Despite the decrease in demand, real estate prices are not only declining, but still continue to rise, to a lesser extent than they have been since 2017 in Tours, where the average price ranges between Between 3,000 and 3,500 euros per square metre, the price has increased by 30% in five years and by 20% in 2020 and 2021 alone, such as Saint-Cyr sur Loire, Fondettes, Saint Avertin and Rochecorbon, have reached the same price level per square metre, or They approach him. ” We are now seeing prices stabilizing on the rise, due to the shortage of residential properties in the city centersays Vincent Briand. At the departmental level, this phenomenon is slightly lower with house and apartment prices up 23% since 2017 “.” You have to spend between 2000 and 2500 euros per square meter to get a house in the second ring of the Turin region and in some small towns in Turin.replete with Marie-Sophie Brokas Bessault. If prices continue to rise slightly, construction land prices rise: it took 20% in one year “.

Thus, low prices in Turin, whose castles and gardens are praised, will not be on the agenda. ” At the moment, the real estate market is holding in TurinVincent Briand welcomes you. However, he can turn around quickly, and run in cycles. In 2008, no one saw the transaction crash coming “.