What if the Olympics were to blame for the low decline in real estate prices?

Although the decline in stone prices has been going on everywhere in France for several months, all experts agree that it is still too limited. Is it the fault of the sellers who are still not ready to cut their capital gains more seriously? And not only that, according to a study carried out by rental investment platform Masteos, according to which the 2024 Olympics could have its share of responsibility. “It all started with a discussion about a taxi, admits Thierry Vignal, president of Masteos. I notice around me the agitation, the fantasy around profits from the 2024 Olympics, either through tourist rentals or capital gains after the games. And with Masteos, we wanted to get to the bottom of it, have factual data and know what it really is.”

Income multiplied by 3.5

And the numbers seem to prove the voice of the street right. According to the elements collected for the study, host cities saw an average value added of 17% after the Games. But what most worries property owners, especially Parisians, is the prospect of good tourist rental deals. According to the study, a major Olympic celebration allows the prices of tourist nights to multiply by 1.5 to 3.5, depending on the city. It’s clearly Parisians who should get the best deals, Marseillais can hope for a nice x2.5, other cities have to settle for a (huge) 50% increase (see infographic).

“This desire to lease headquarters during the Olympics is massive and creates a knock-on effect on sales projects that has been largely underestimated.”, emphasizes Thierry Vignal. In particular, he drew attention to the very high current activity on the part of Airbnb’s concierge services, which will manage the arrivals and departures of “Olympic” vacationers. It is true that the average nightly rate estimated at 812 euros in Paris can be thought provoking… But despite the results of his study, the manager believes that his lessons are not necessarily verified and above all not desirable. “Despite the situation of systematic capital gains in the past, it does not mean that it will happen again in Paris and I even doubt it in the current situation.”, admits Thierry Vignal. And given the very high rental prices at the moment, Airbnb is not convinced that the trend will continue in the coming months. “Undoubtedly, there will be an increase in the number of Parisians who wake up late, increasing the supply, he believes However, demand should not change suddenly. I don’t believe in good late offers for owners, the Olympic clientele secure their trip well in advance and prices should then rather drop.

Between the hope of added value (or at least better resistance to falling prices) and the dream of high rental income, many owners would therefore delay putting their home up for sale. The result: a supply that tends to decline and prices that resist more than reason. “This Olympic dream sends two bad signals, causing supply shortages and keeping prices artificially high.” summarizes Thierry Vignal. A large number of owners believe that it is necessary to delay the sale of their home to pocket the Airbnb income, and they say that waiting should allow them to find lower interest rates. Chimeras, which, according to him, could cause some disillusionment in the future.

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