housing prices falling in big cities in 2024

At the end of 2024, the Superior Council of Notaries has unveiled its annual real estate report. The study reveals a drop in housing prices and a plummeting number of property sales.

Borrowing rates noted on 12/25/2024

Prices falling almost everywhere in 2024

According to the survey, the decline is almost general in the main metropolises, with a 3.9% shot for apartments and old houses from September 2023 to September 2024.

The largest price declines were recorded in Nantes and Lyon, with drops exceeding 8%. Among the large cities, only Nice, the second most expensive city in France behind Paris, has seen the price of its square meter increase slightly this year (+0.1%). At the end of January 2025, prices are expected to decrease by 1.2% for mainland France, by 0.4% in the regions and -2.5% for Île-de-France.

In contrast, the total volume of housing sales fell 17% year-on-year, with only 780,000 transactions recorded. For comparison, in 2023, there were 935,000 transactions at the end of September 2023 and 1.13 million in 2022. According to the Notaries of France, the volume of transactions should reach 750,000 for the whole of 2024.

The real estate purchasing power of the French on the rise

First of all, real estate rates fell gradually in 2024. According to our Empruntis barometer, the average rate over 25 years rose from 4.25% in January 2024 to 3.55% in December of the same year.

This drop in rates, driven by that of the ECB's key rates, allowed the French to gain real estate purchasing power. Thus, borrowers were able to buy larger. The gain compared to 2023 is estimated at 3 m2 (+4% in one year). According to the Council, in 2024, households can buy an old home of 77 m2 on average in France.

Obviously, the situation is different depending on the region. According to the Notaries of France, with a 20-year property loan and a monthly payment of 800 euros, French people can become owners of an apartment of 111 m2 in Saint-Étienne, 12 m2 in Paris, 29 m2 in Lyon or even 41 m2 in Marseille and Toulouse.