SHARE
COPY LINK

ECONOMY

‘A lifeline for small towns’ – France keeps building cinemas despite Covid

The coronavirus pandemic might not seem like the obvious time to build new movie theatres, but in cine-mad France, it will take more than a virus to dampen passions for the big screen.

'A lifeline for small towns' - France keeps building cinemas despite Covid
Cinemas in France have been closed for months due to the health crisis. Photo: AFP

The town of Romorantin, deep in the Loire Valley south of Paris, has a population of 17,000 – which by French standards, makes it ripe for a new multiplex cinema.

On a recent morning, forklifts were whirling as workers rushed to complete the five-screen theatre by the end of March.

It is not the only one. France saw 22 new cinemas open their doors in 2020, despite theatres being unable to operate for much of the year.

Several more are under construction or being renovated.

France, the birthplace of moving pictures, has almost always had the highest cinema attendance in Europe.

Even though attendance was down two-thirds last year thanks to 23 weeks of closures and the cancellation of many Hollywood blockbusters, the country weathered the disruption better than most – in part because it could still rely on its prolific, homegrown movie industry.

Parisian cinema lovers are hoping that the capital's many small movie theatres may soon reopen. Photo: AFP

France is also known for its network of tiny independent cinemas dotted across its villages and small towns.

Some are beautifully quaint – but struggling to attract the next popcorn-guzzling generation.

READ ALSO: Eight great French films to watch over the holidays

The new multi-million-euro Cine Sologne complex in Romoranti is being built in an out-of-town car park, and replaces the old Palais in its medieval centre, which attracted some 70,000 spectators a year but lacked the technology and comfort needed to rival home cinema offerings.

“We have to attract people who want to go to the cinema, but look at these small, local theatres and think, 'No thanks',” said Cedric Aubry, head of the construction firm.

He specialises in bringing shiny new complexes to remote locations not considered worthwhile by the major chains.

This is his fourth cinema construction since the pandemic began, and he says the model is working, with similar remote projects in places like Meuse and Yonne as much as tripling local attendance.

READ ALSO: Why the French passion for dubbing films shows no sign of dying out

The planned programme of a closed Parisian movie theatre. Photo: AFP

'Lifeline'

For a town like Romorantin, still reeling from the closure of a car plant and devastating floods over the past couple of decades, such projects are indispensable, said mayor Jeanny Lorgeoux.

“It's a crucial lifeline for a small town,” he told AFP. “It's a social link with others, between generations, and an economic boost.”

Since the factories disappeared from this region, cinemas have become a rare place where the remnants of the working class rub shoulders with the Loire Valley's “chateau and hunting” set.

Aubry agrees, and raises the 'yellow vest' protests that spread across rural France in 2018 and 2019.

“The message was that people felt abandoned out in the provinces. It's a modest response, but clearly among the 2,000 cinemas of France, many are in dire need of renovation and transformation.

“The cinema is often, especially in small towns, the last important cultural place that still appeals to all people,” said Aubry – and it helps to have five screens that can show the latest Fast and Furious alongside an existential drama starring Isabelle Huppert.

As for the pandemic? “That's no reason to give up,” he said.

Far from it: “This crisis has only reinforced how much we miss being around other people.”

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Does falling interest rates in France mean more people are buying property?

Interest rates in France have finally begun to fall but has the drop sparked the French property market into life?

Does falling interest rates in France mean more people are buying property?

After real estate professionals called 2023 an ‘annus horribilis’ in France, prospective home buyers have been hoping for the market to improve in 2024.

One particular issue last year was high interest rates for mortgages, coupled with strict loan requirements.

As a result, the number of mortgages granted dropped by 43.5 percent when comparing October 2023 with the same month the previous year, according to France’s Housing and Credit Observatory. 

However, those high rates have finally begun to fall, as experts thought they would.  

According to data from the Banque de France, average interest rates for new housing loans in March 2024 were at 3.94 percent, a decrease from 4.11 percent in February and 4.17 percent in January. 

However, the average rate from March was still considerably higher than that of February 2022 (just 1.1 percent). On top of that, and the rate of purchases and new mortgages are still at a low level.

France’s central bank published new data on Monday that found that despite the dropping rates, the total amount of real estate loans given out has continued to decrease. 

The total amount of money awarded to new mortgages in March amounted to €6.7 billion, down from €7.4 billion in February, marking the lowest value in almost 10 years according to Les Echos.

Why is the market still slow?

According to reporting by Les Echos, a big part of the problem is that overall real estate prices are still very high, even though they have started to decrease.

The Notaries of France found in their yearly report that property prices had gone down by an average of four percent across the country in 2023, but this picture depends a lot on location.

Large cities, such as Paris and Lyon, have seen greater decreases in the price per metre squared, while small-to-medium sized cities and rural areas have seen prices remain stable or even increase.

For example, property prices in the Paris region dropped by 6.9 percent year-on-year in February 2024, compared to a decrease of 2.9 percent which was the average for France’s other regions.

Additionally, would-be buyers still have to contend with France’s strict lending regulations.

READ MORE: French property: How to get a mortgage in France

In 2022, France’s council for financial stability (HCSF) issued new rules requiring that repayments – including insurance charges – must not exceed 35 percent of income, and borrowers must take on a loan with a maximum of 25 years, or 27 years in certain cases. 

In December 2023, French lawmakers attempted to take up this issue. They succeeded in making things slightly more flexible, including allowing banks to allow borrowers to take out a 27 year loan as long as they are having renovation work that represents at least 10 percent of the home’s cost.

The HCSF also changed some of the ways that banks can calculate interest, as well as giving them more leeway in giving loan-related exceptions (previously these exceptions could only account for the 20 percent a quarter). 

Is the government doing anything to boost the market?

In late-April, French MPs tried to table another bill that would loosen the regulations for granting loans even more, however it was eventually withdrawn after being criticised by the Banque de France for lacking substance. 

Any new changes will likely be announced during the next quarterly meeting between the Banque de France and the minister of finance, Bruno Le Maire, but the date has still not been announced yet.

READ MORE: Where in France will property taxes rise in 2024?

What do experts expect for this year?

In April, the French property site Meilleurs Agents published their predictions for 2024, based on data from the first quarter. According to their experts, average mortgage rates will likely continue to on the trend of decreasing slowly.

However, this will depend on the policies set by the European Central Bank, which considers factors such as inflation when making their recommendations.

The property site also predicted that property prices would continue to drop, while maintaining large disparities between big urban areas and rural ones. 

As for whether or not the market will speed up, the experts referenced the situation from 2023, when the number of property transactions (sales and purchases) fell by 20 percent. They predicted that there would still be a decrease in transactions, but that it would be lower than the one seen in 2023. 

SHOW COMMENTS