The latest S&P European real estate price predictions show positive news for owners and investors.
We examine the report, to see what may be on the cards for Paris property owners.
European real estate predicted to rise
S&P Global Ratings is a US-based credit rating agency, the largest of the Big Three recognized internationally. They publish independent investment research that the world looks to.
According to a new study by the agency, the price of European real estate will rise in the coming years, despite an expected slowdown in 2021.
For the medium to longer-term, it is good news for owners and investors.
The specific results for France
The report outlines housing market forecasts for the whole of Europe, up to 2023.
Looking at France specifically, growth for 2020 was 4%. This is a strong performance for the housing market in 2020, despite the challenges of the coronavirus pandemic.
The increase is due to pent-up demand from the lockdowns of last year.
Next, the S&P study outlines the expected relaxing of social-distancing restrictions, which means “European housing markets are likely to regain some strength.”
The forecasts for the coming years then suggest expected real estate growth of 1.5% in 2021, followed by 2% in both 2022 and 2023.
So while growth in the French housing market likely to slow, it is still an upward trend.
An increasing value in homeownership
The S&P Global study also outlines a curious effect of the recent lockdowns: spending more time at home is “making people place more value in owning a home.” This points to further confidence in real estate as a secure investment.
The survey data also suggests that in Europe, home purchase intentions are at their highest since 2003. Better still, in France they are at a record high.
Continuing, the report indicates that cities remain attractive to homeowners.
Even with working from home more widespread, S&P stipulates that cities such as Paris continue as the center of economic activity.
City life, with its better job prospects and infrastructure, are all important determinants of housing demand.
Conclusions from the S&P European real estate price analysis
The analysts at S&P make some interesting conclusions to the study.
“Reinvigorated demand for housing” and “housing price growth beyond 2021” are both suggested, following the likely easing of pandemic-related restrictions this year.
“This should pave the way for a sustained recovery in the economy.”
Here to help with your property investment
The S&P European real estate price forecast is an assured indicator of the strength of real estate for solid investment.
Our team of experts at 56Paris are here to assist with all your property queries and are continuing to successfully work with clients wishing to purchase or sell apartments in Paris.
Please do not hesitate to get in touch to see how we can help you.