Real estate in Lyon. Alarming figures: “We have never experienced such a violent crisis”

Real estate in Lyon. Alarming figures: “We have never experienced such a violent crisis”
Real estate in Lyon. Alarming figures: “We have never experienced such a violent crisis”

By

Anthony Soudani

Published on

May 30, 2024 at 12:31 p.m.

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“We can say that we are sure a housing crisis unprecedented. » Pascal Pancrazio, president of the Rhône National Real Estate Federation (FNAIM), does not mince his words when presenting the key figures to the press on Wednesday May 29, 2024 in Lyon.

Collapsing sales, stuck market with rates that have skyrocketed in 2023, new home market at half mast… the results drawn up are clear. However, the situation could improve in 2025.

The number of home sales plummets

“We have never experienced such a violent crisis with a sudden rise in rates. They have quadrupled. We have never experienced this in the history of real estate,” says Loïc Cantin, president of the National Real Estate Federation (FNAIM). In the Rhône and Lyon, the figures speak for themselves.

In the Rhône, the number of housing sales increased fell by 22.20% in one year (between the end of February 2023 and the end of February 2024). Only 20,886 homes were sold during this period. In Lyon, sales amounted to 6,223 and 2,114 for Villeurbanne. And the prices keep falling.

Prices are falling further in Lyon and Villeurbanne

In Lyon, the price per m² is 4,492 euros as of May 1, 2024. The latter fell by 1.8% over the last three months and by 7.1% over one year. Compared to May 1, 2022, the price per m² in Lyon fell by 10.8%.

In Villeurbanne, the drop in prices is even more significant. The price per m² is close to 3,600 euros on May 1, 2024 with a decrease of 2.7% over the last three months and 7.9% over the year.

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In the Rhône, the price per m² also fell over one year (-5.6%) and just exceeded 3,600 euros.

Real estate prices will also fall in Villeurbanne in 2024. (©Anthony Soudani / news Lyon)

New figures in the Rhône: a market at half mast

The number of new homes available increased by 17.3% in one year in the Rhône. It increased from 3,152 in April 2023 to 3,692 in April 2024.
The drop in demand therefore leads to a drop in prices per m² of reservations. It went from 5,461 euros in April 2023 to 5,108 euros in April 2024 (-6.46%).
Another important piece of data shows that the new home market is at half mast: the 31.47% drop in the number of net reservations. From January to April 2023, 734 reservations were made compared to 503 between January and April 2024.

A drop of between 6 to 8% by January 2025

Will the free fall in property prices continue in 2024? Yes, according to Loïc Cantin. “We projected a drop of between 6 to 8% by January 2025, then it should stabilize. I am optimistic about the market recovery. »

He adds: “There have been three consecutive quarters of falling prices, which is beneficial for access to property. »

Bank rates will fall

But then, why isn’t the market picking up already? Bank rates and the greed of sellers in the face of buyers now in a position of strength partly explain the situation.

” Today, we are rather at a rate of 3.70% only 4%,” explains Kathie Werquin-Wattebled, regional president of the Banque de France. “On June 6, rates will fall again,” she announces.

“2024 will still be difficult and it will start again in 2025”

And on the sellers’ side, are they ready to lower their prices and bring them up to market level? “As soon as an owner dreams, the deadlines extend by six months or a year and a half. I recently sold a property initially put on the market for 955,000 euros. It was signed for 805,000 euros,” says Deanna Nociar, vice-president of transactions.

“Buyers have become demanding. It’s an adjustment that is necessary,” she adds. In conclusion, according to the FNAIM du Rhône: “2024, it will still be difficult and it will start again in 2025.”

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