June 27, 2024 - In a real estate context where the average acquisition cost is increasing faster than the average repayment capacity, the cooperative banking group Crédit Mutuel Arkéa has decided to launch Duoprimo, a new real estate solution for first-time buyers. Distributed in regions through Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, the goal of Duoprimo is to offer a supplement to the personal contribution of eligible first-time buyers through the participation of the dedicated vehicle Arkéa Foncière Résidentielle, thus enabling them to meet the regulatory constraints related to the effort rate.

First-time buyers, who represent nearly 50% of the projects received by Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, are currently among the clients most affected by the real estate context and banking regulations. Faced with this observation, the Crédit Mutuel Arkéa group, which has been a mission-driven company since 2022, decided to launch a dedicated co-investment solution to support first-time buyers in their projects and allow them to meet the regulatory effort rate without significantly degrading their disposable income.

A Budget Supplemented by Arkéa Foncière Résidentielle

The Duoprimo solution, currently being tested in several local branches of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, offers first-time buyers a supplement to their personal contribution from the bank. Specifically, the individual buys a majority share of their primary residence, and Crédit Mutuel Arkéa co-invests in the remaining share through the Arkéa Foncière Résidentielle vehicle, up to a maximum of 10% of the acquisition cost and for a maximum period of ten years.

This solution allows first-time buyers to complete their financing plans in situations where recourse to amortizing loans is insufficient. Duoprimo will be more widely distributed by the local branches of CMB and CMSO during 2024 and focuses on new housing purchased off-plan (VEFA - Sale in Future State of Completion) and older housing with renovation work, or existing properties without renovation whose energy performance certificate (DPE) rating is E or lower.

Acting for Responsible and Protective Real Estate

The innovation provided by the Duoprimo real estate co-investment solution is another illustration of Crédit Mutuel Arkéa's and its federations' ability, Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, to propose solutions tailored to the realities on the ground and the current challenges faced by their member-clients daily.

Duoprimo indeed aligns with the ambition driven by Crédit Mutuel Arkéa's real estate division. Launched in September 2023, this division brings together the group’s real estate expertise to act in favor of responsible and protective real estate around three strategic priority axes: housing, transitions, and territories.

Statements from Leadership

“As housing credit production fell by 41% in France in 2023, that of the local branches of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest fell by only 20%. Our federations continue their financing actions as close as possible to the daily lives of our member-clients, and it is in line with this commitment that the Crédit Mutuel Arkéa group decided to launch the Duoprimo offer for first-time buyers. This innovative offer, calibrated to the real difficulties encountered on the ground, allows us to act concretely to improve the quality of life in the heart of our territories in line with our mission-driven company commitments. Crédit Mutuel Arkéa once again relies on its innovation and agility capabilities to offer a coherent solution that is set to be deployed very soon across our entire network.”

– Julien Carmona, President of Crédit Mutuel Arkéa and Crédit Mutuel de Bretagne

“In a turbulent real estate context where home ownership has become more complicated due to rising housing prices, Crédit Mutuel Arkéa is committed to its clients and members by offering an innovative solution to facilitate first-time home purchases. As a cooperative bank and in line with our mission-driven company commitments, we are proud to present this Duoprimo system which promotes the realization of first-time home projects. Attentive to our clients' expectations, we are keen to prove our ability to support them in the long term. More than ever, we must be their trusted partner, open to their projects, and innovative in our proposals. The trial of this system, currently underway in our federations' local branches, has confirmed its relevance, thus enriching our range of housing solutions.”

– Hélène Bernicot, CEO of Crédit Mutuel Arkéa