Will the Covid-19 bring down real estate?

Is the real estate market going to crack?

So far, despite the Covid crisis, prices have continued to climb.

But the landscape is changing.

Yes for the time we have expected, this turnaround!

Well it happens.

We see it all over France.

We are probably experiencing the end of a five-year cycle of price increases.

According to figures collected by

in the ten largest French cities, we can see that prices are calming down, that the market has reached a plateau. 

Even in the capital, which is nevertheless a very speculative market? 

It's very clear in Paris where prices have been stable on average since spring.

At a very high level of course, 10,600 euros per square meter, but that is not increasing any more.

Same thing in Lyon, Toulouse, Lille, Marseille… So will prices go down for all that?

Several reasons point in this direction.

One: The effects of the crisis, along with rising unemployment, will really be felt this fall.

Two: there is a very clear tightening of credit, the banks are refusing a lot of loans, especially if you work in the most fragile sectors such as hotels and tourism.

In short, for the first time in five years, the mad house price curve has peaked and is likely to be reversed before the end of the year.

Don't bet on a meltdown anyway.

For a simple reason: interest rates will remain very low, it is still very interesting to get into debt under these conditions. 

Nicolas, you told us yesterday Veolia's takeover bid for its rival Suez.

You spoke to us of "enemy brothers".

It's the war !

The enemy brother Suez did not take long to react in fact to oppose this takeover.

Suez is a very old group, its origins date back to the middle of the 19th century, it is the Suez Canal, Ferdinand de Lesseps… Suez therefore has its own culture and it does not want this marriage.

Its leaders are protesting against the dismemberment of their group, since if the takeover by Veolia is successful, the French activities of Suez will be split.

Suez wants to at least try to elicit a counter-offer.

Rather be bought by someone other than by the enemy brother Veolia!

It remains to find this someone else and it is not obvious.