Property Market in Poitou-Charentes - Industry chiefs optimistic

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In an attempt to re-ignite the property market in the region, key players in the industry raised their heads above the parapet this week, claiming that the current low property prices combined with cheap home loans are likely to rally the market over the coming months.

Bruno Risser, directeur général of Crédit immobilier de France Sud Atlantique, urged professionals not to yield to the fear perpetrated by the press, and avoid relaying pessimistic messages.  He said "the property market is, structurally, a growth market which is in a phase of adjustment, and it will set out again."

He said that he wants to counter the notion that banks have turned off the tap for private borrowers.  Whilst bankers have tightened their approach to risks on loans, they can't stop lending altogether, as they themselves have to make money.

Ghislain Nadaud and Dominique Durand from the credit brokers Cafpi, believe that recent measures introduced by the government for home loans and rental investments should support faster recovery.  They believe that the combination of low-rate loans and lower property prices, a rarity in modern times, will force potential buyers to think again about taking a 'wait and see' approach.  They feel that the market will pick up quickly, and that the current favourable buyer conditions won't last.

Whilst the banks have imposed stricter lending controls, Cafpi says "the banks will always lend, and although credit is more tightly controlled, brokers are able to find the right lenders that fit the profile of the potential purchaser.  The famous 33% debt rule should not inevitably constitute a barrier."  Bruno Risser suggests that existing debt is not necessarily the only deciding factor for the banks in assessing risk, he said "the way in which a borrower manages their budget is as important as the amount of debt they have."

Whilst this is hardly an independent view, it is at least encouraging that lenders are starting to talk-up the prospect of firstly getting a home loan, and secondly grabbing a bargain in the current market conditions.

National newspaper Le Monde reports mixed news today for the new-build sector, with prices stabilising, but the number of start-ups significantly reduced.  The number of project start-ups between Nov 08 and Jan 09 have dropped significantly compared with the same period in 2007 (-20.2%), while the average price per metre squared has stabilised, dropping just -0.1% in December 08 after a drop of -3.5% in November (compared to 2007). 

To see details of the pictured property, which has been reduced by 30,000€, click here.  The property is available with Europe-Immo-Jonzac.