Real estate credit: a new record in 2017

Figures and a new record was broken with nearly 255 billion euros in loans granted.

New record for real estate in 2017

home loan

In 2017 the French continued to borrow more to buy a property. The Banque de France has just published the figures and a new record was broken with nearly 255 billion euros in loans granted at the end of November 2017, against 250 billion in 2016.

On a month-to-month basis, the annual growth rate of loans to individuals remains unchanged at a high level of + 6.4%. This dynamic is still driven by strong growth in home loans (+ 6.2% in October and November) and consumer loans (+ 6.4%, after + 6.5% in October).

Excluding buybacks and renegotiations, the average duration of home loans continues to increase, reaching 20 years and 2 months in October 2017. The average interest rate on housing loans (long-term and fixed-rate) is down very slightly in November (1.64%, after 1.67% in October).

Fewer real estate renegotiations

Fewer real estate renegotiations

The amount of new loans to housing increases in November (17.0 billion euros, after 14.6 billion euros in October) due exclusively to the increase in loans excluding renegotiations (13.7 billion euros) , after 11.3 billion euros in October).

The decline in the share of renegotiations in the production of housing loans is continuing (20% in November, after 23% in October). Loan volumes have been falling since last May. At the same time, new housing starts slowed in Q3 2017.

Optimistic professionals

Households have been chilled by rising prices, despite low rates. 2018 promises to be a quieter year, according to real estate professionals. They maintain morale. They are 80% optimistic for the year just started. According to this study optimists expect to ride low rates and the dynamism of the market.

For real estate professionals the year 2017 was the year of records with the number of sales and prices rising, especially in large cities, with the cap of 9,000 euros per m2 exceeded in Paris. According to the National Real Estate Federation, the price increase should continue in 2018 between 2 and 4%.

To note On the rental side, the list of the most expensive cities was unveiled and unsurprisingly Paris came in first with a rent of 25.5 euros per square meter.