The real estate crisis is still not over. The figures from the Habitat Observatory released this Wednesday confirm this. Overall, in the first quarter of 2024, activity in the real estate and residential land markets remains much lower than before the crisis that began at the end of 2022. A note of hope, however: the sale of existing apartments is restarting, with a number of transactions up 24.5% compared to the first quarter of 2023.
All apartments included (existing and to be built), sales increased by 9.3% between the first three months of 2023 and the first quarter of 2024, for a total of 901 sales recorded, including 809 for existing apartments and 92 for apartments. in construction (-47.1% over one year, a figure divided by seven compared to before the crisis). Between 2017 and 2022, 1,669 transactions were listed in the first quarter on average, including 667 for apartments under construction.
With this rebound, the financial volume remains stable, at 548 million euros in the first quarter of 2024 (-0.4%), reflecting the fall in apartment prices. On the house side, activity remains well below pre-crisis levels, even if the number of transactions increased slightly over one year, with 450 sales of existing homes (+8.2%) in the first quarter, for a financial volume down 12% over one year. Here again, prices fell.
The drop in prices, in fact, seems to be starting to show signs of slowing down. In short, they are still falling, but less quickly. Between the last quarter of 2023 and the 1st quarter of 2024, property prices fell by only 0.3%. Over one year, the decline still remains significant, with -10.9%. For apartments under construction, “it seems that certain developers have chosen to lower prices, or have been forced to do so since the third quarter of 2023,” notes the Habitat Observatory. Who estimates, given the particularly low number of transactions, that “other developers have probably chosen to wait again” for prices to rebound.
On the rent side, posted prices seem to be stabilizing, after several quarters of sharp increases. For apartments, the increase between the first quarter of 2023 and the first quarter of 2024 is limited to 1.5%. For houses, advertised rents fell by 1.1%, but their number is limited, since only 13% of rental advertisements relate to houses. These figures relate to rents for new rental contracts. During the lease, the increase in rents remains relatively moderate, with +1.5% over one year, half as much as inflation.
Are you already following us on WhatsApp?
Subscribe to our channel, activate the little and you will receive a news recap every day in early evening.
