The real estate market in the Pays de Gex
The year 2023 was marked by a significant decline in property sales nationwide (-22% according to Immo Matin), indicating a mixed trend for the sector. However, despite these challenges, the real estate market in the Pays de Gex, located in the heart of the Geneva basin, has demonstrated significant resilience in the face of the crisis, offering encouraging prospects for the future. This can be explained by several factors, including the economic dynamism supported by Switzerland, with purchasing power maintained in the face of the sharp rise in interest rates thanks to the CHF. Turnover is higher than in other regions, in particular because of the international nature of our market, with, among other things, new business establishments in Geneva. Cabinet Landecy, a real estate agency in Thoiry, has been able to maintain and even develop its activity, thanks in particular to the recruitment of new employees and a significant presence in the field, thus testifying to the robustness of the local market.
Real Estate Trends in the Pays de Gex
One of the trends observed is the gradual withdrawal of first-time buyers from the market. This category of buyers, often made up of young households or people buying their first main residence, has faced several obstacles. Firstly, rising interest rates have made home ownership more expensive, reducing the borrowing capacity of many prospective buyers. Interest rates, which have risen significantly over the previous year, have weighed heavily on the budgets of first-time buyers, limiting their possibilities of acquisition.
In addition, the criteria for selecting banks have become stricter, making obtaining a mortgage more selective. Financial institutions have tightened their requirements for borrowers' creditworthiness, becoming more attentive to prior debt and income stability. This development has led to a gradual exclusion of profiles deemed less solvent, in particular those of first-time buyers with limited financial resources or with less established career paths.
As a result, many first-time buyers have had to postpone their purchase plans or reconsider their expectations in terms of real estate. Some have been forced to reduce the size or comfort level of their planned home, while others have preferred to postpone their planned purchase until more favourable market conditions arise. This development has had a direct impact on sales dynamics, particularly in market segments traditionally popular with first-time buyers, such as the south of the Pays de Gex.
Another worrying trend that has marked the real estate market in the Pays de Gex is the significant decline in sales of building land. This decrease, observed throughout the previous year, raised concerns among the sector's players. Indeed, this unprecedented drop in land transactions was particularly notable for the agency, which recorded its lowest volume of land sales over the period.
Several factors have contributed to this situation, first of all, rising interest rates have deterred many investors and real estate developers from embarking on new construction projects. Higher financing costs have impacted the potential profitability of land operations, prompting some players to adopt a more cautious attitude towards their investments.
At the same time, construction costs have also increased, adding further pressure on the profitability of real estate projects. This combination of factors has led to a certain reluctance on the part of land sellers, who sometimes find it difficult to accept to reduce their selling prices to adapt to the reality of the market. This resistance to falling prices has created a blockage in the land market, thus slowing down the fluidity of transactions.
However, despite these difficulties, encouraging signs are beginning to emerge at the beginning of 2024. Cabinet Landecy observes a gradual recovery in sales, reflecting renewed investor confidence in the local real estate market. The first months of the year have already seen an increasing number of sales promises, suggesting promising prospects for the coming months.
First of all, there are now fewer buyers, but generally more qualified. Faced with stricter solvency requirements from banks, prospective property buyers have had to strengthen their financial records. Many have increased their personal contribution, demonstrating their ability to invest and their commitment to their real estate project. At the same time, some buyers with the necessary financial means have even opted for cash purchases, thus avoiding the constraints associated with financing and strengthening their negotiating position on the market.
This development has led to increased bargaining power for buyers, who can now benefit from more advantageous conditions during real estate transactions. For those who use financing, Cabinet Landecy is committed to supporting them in their process, working closely with its broker partners to assess their financial capacity and thus guarantee the viability of their project.
Paradoxically, despite the increased selectivity of banks, few of Cabinet Landecy's clients have been refused their financing. This resilience can be explained in part by the expertise and personalized support offered by the agency to its clients, as well as by the positive signals observed in the market since the beginning of 2024.
Indeed, financing conditions seem to be gradually easing, with a drop in interest rates and a less restrictive attitude of banking institutions. Currently around 3.80%, interest rates offer attractive opportunities for buyers, stimulating demand in the Pays de Gex real estate market .
Promising Outlook for 2025
After a challenging 2024, the Pays de Gex real estate market seems to be starting a revival at the beginning of 2024. The positive signals observed, such as the resumption of building land sales and the easing of financing conditions, are strengthening buyers' confidence. With a dynamic market supported by the regional economic dynamism and the new establishment of companies in Geneva, the Pays de Gex continues to attract the interest of investors and buyers.
In this context, Cabinet Landecy remains a privileged partner for buyers looking for advice and expertise. By anticipating market developments and offering adapted solutions, the agency continues to play a key role in the success of its clients' real estate projects, thus contributing to the dynamism and vitality of the Pays de Gex real estate market.
Our agency strives to adapt its offer and support to the changing needs of first-time buyers, by offering personalized solutions, by offering opportunities that correspond to their profile and their financial means. Despite the challenges encountered, the agency remains convinced of the potential of the local real estate market and remains committed to facilitating access to property for all its clients.
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