French Real Estate Gets A Boost With Government’s Ambitious Plan

For two years, the French real estate market has been going through a deep crisis, fueled by soaring prices and difficulty accessing credit. In response to this critical situation, François Bayrou, the Prime Minister, presented a set of measures aimed at revitalizing this capital sector for the national economy. Focused on tax incentives, enhanced support for construction, and regulatory adjustments, these proposals seek to address current challenges while considering social and environmental stakes. While these initiatives spark hope for a rebound, they also raise numerous questions regarding their effectiveness and implementation.

Supporting Real Estate : Ambitious Measures

In his general policy speech, François Bayrou unveiled a series of strategic measures to revive a real estate market losing momentum. Among these, the creation of 15,000 student housing units per year over a period of three years stands out as a direct response to the critical housing shortage. The Prime Minister emphasized the importance of this initiative, asserting that it aims to “restore confidence to young generations and ease the pressure on university towns.”

To enhance accessibility to property, the government also announced the expansion of the Zero-Interest Loan (PTZ). This adjustment aims to integrate more first-time buyers, with particular attention to often neglected rural areas. In addition, a financial incentive will be offered to mayors to promote “gentle densification” of regions. This approach seeks to meet the growing housing needs while also limiting the negative effects of urban sprawl, in an effort to reconcile urban planning and environmental sustainability. Thus, these measures reflect a strong willingness to revitalize a sector in crisis, addressing social and territorial issues.

Uncertainties and Challenges Ahead

In addition to the measures aimed at reviving the real estate market, François Bayrou also mentioned a possible increase in notary fees. This proposal, immediately criticized by industry professionals, is viewed as a potential hindrance to transactions. According to a spokesperson for the National Real Estate Federation, “this is a contradictory decision to the stated goal of revitalizing the market.” In a context where interest rates keep climbing, this measure risks exacerbating access difficulties for many families.

Conversely, the exemption from inheritance tax on new housing could constitute an important lever to stimulate constructions. This initiative aims to boost demand in a critical segment of the market, providing opportunities for first-time buyers. However, its effectiveness will heavily depend on the efforts made by local authorities to adapt the infrastructure and meet the needs generated by the increase in constructions. In this context, the balance between market support and operational feasibility remains a major challenge that will require close coordination between public and private stakeholders.

These measures raise questions regarding their budgetary feasibility and their ability to transform territorial dynamics sustainably. While they hold the hope of a revival, their effectiveness will depend on rigorous implementation and close consultation with local stakeholders. In a market weakened by structural imbalances, these initiatives represent a promising starting point. However, they must be accompanied by a long-term vision to fully meet the expectations of families and industry professionals.