Real estate credit in 2021: will rates increase with the crisis?

2020 was a very special year. The health emergency due to the coronavirus has weighed on the entire economy, affecting all sectors and also impacting the real estate market. All of this raises serious concerns among players in the real estate market who are now living in uncertainty. But in all likelihood and based on analyzes of the site find-my-pret-immo.fr, in 2021, residential property prices are expected to increase and interest rates are also expected to see slight growth. Read also: Google my business SEO: attract new customers in your city thanks to this training from a recognized expert.

First, the postponement of operations in 2020 is a good sign

According to surveys carried out, more than 50% postponed their purchases in 2020 due to the crisis imposed by the pandemic. As the situation proved to be quite uncertain and many feared being laid off due to losses to their businesses, most citizens chose not to make high-impact purchases in 2020. Which can be quite beneficial for the market scenario real estate in 2021, where many people have saved due to the crisis. And they ended up not having to spend the amount, and will therefore now have the opportunity to invest in real estate, taking advantage of the low interest rates to create their own house or apartment, according to their preferences. Read also: The exponential evolution of bedbugs in France

Increase in sales after a few months of crisis

But at the start of the pandemic, the biggest impact businesses felt in both real estate and any other industry was the reduction in product research. Due to people's concern about being unemployed and therefore having nowhere to get their income. This caused a very worrying crisis in a short time, but it began to dissipate a few months later. Therefore, the scenario of real estate market in 2021 is expected to have a sharp increase in the number of properties sold. Which will be beneficial for the entire national economy. Well, this will lead to the turnover of a lot of capital, which will increase sales in the most diverse sectors. Read also: Hybrid cameras: the essentials to know

Impacts of the pandemic on the choice of properties in 2021

The pandemic has had a direct impact on the personality of the French who have always been a people who do not like to stay at home and who therefore do not care so much about leisure and the comfort of home. But in 2020, we were forced to stay at home so as not to expose ourselves to the danger of the virus. In this way, it has significantly changed the way we view our homes. So, it will be a reason that will move the real estate market This year. Many people will move in search of a place with more comfort and leisure. In case they are forced to stay home again, they have a nicer place to spend their days. Read also:Automotive: everything you need to know about the silent block

What will happen in 2021?

On the interest rate front, it's quite simple to speak out again this time. The year 2021 will still be characterized by very low rates, given the need to restart the economy and investments. Let us always remember that the rate applied to mortgages ultimately depends on the rate that the ECB used to lend money to private banks. As long as the European Central Bank will face a euro zone in slow growth, with an inflation rate that is struggling to take off, the central rates will remain low and consequently those applied to real estate loans will also be low. The situation related to the number of mortgage applications is different. These depend directly on the performance of the real estate market, which remains a major unknown for the moment. Furthermore, the pandemic has turned our lives upside down, calling into question all certainties. We have become more attentive to everything, more cautious about the future, aware that we cannot predict everything at all. This could perhaps be the reason that will encourage more and more people to apply for long-term home loans compared to pre-pandemic levels. Ultimately, the real estate market will be the main driver of economic recovery and a treat for real estate agents. And it will have to be much more consistent and mature this year with unstable but affordable rates. Read also:SLR camera comparison: ranking