Residential real estate market trend in the first quarter of 2024
A first quarter driven by existing asset transactions
The increase in activity in the first quarter of 2024 compared to the first quarter of 2023 is attributed to several key factors. Firstly, the sustained demand for existing residential assets continues to drive the market. Additionally, the postponement of certain sales initially planned for 2023 has contributed to this increase in activity. Finally, significant transactions, such as the sale of the building by CDC Investissements Immobilier to ARKEA REIM, located at 43 boulevard Victor Hugo in Neuilly, have also played an important role. This building was co-exclusively marketed by Catella and Cushman & Wakefield.
The real estate market for coliving or student residences remains a highly sought-after asset type by institutional investors, despite the absence of significant coliving transactions in the first quarter of 2024.
Decline in new home sales in the first quarter of 2024
Total new home sales in the first quarter of 2024 decreased by 15.4% compared to the same period in 2023, despite a 29.4% increase in bulk sales. This increase is primarily due to sales intended for intermediate housing actors and, to a lesser extent, to social landlords, while bulk sales to institutional investors significantly decreased. Action Logement has achieved the goals of its "30,000 Housing Units for Employment" plan, launched in July 2023, with a majority of intermediate rent housing (LLI). CDC Habitat, for its part, has pre-ordered 17,406 housing units by the end of December 2023 as part of its housing sector support plan, in collaboration with 120 regional and national developers.
