Free fall in real estate prices: discover the major French cities most affected!
In one year, the real estate market in major French cities has seen a significant drop in prices, particularly in old apartments. Notaries of France deliver an alarming assessment for the year 2024.
Also read:
A declining real estate market
According to the latest report from the Superior Council of Notaries, the market for old apartments has suffered a generalized decline prices of -4% nationally in the third quarter of 2024. This decrease marks a return to price levels observed in 2021, highlighting a downward trend robust which accelerated compared to the previous year.
Factors influencing price fall
The main reason for this drop in prices lies in the decrease in demand. This is largely due to the difficulties encountered by households in obtain real estate loansaccentuated by an increase in interest rates since the start of 2022. The number of transactions fell by -17% year-on-year, reaching a historic low for more than nine years with only 780,000 sales made over the last twelve months.
Major French cities under the microscope
Almost all major French cities have seen their apartment prices fall over the past year. With the notable exception of Nice, where prices remained stable, all major cities in the country recorded declines. Nantes stands out for the biggest drop, with a decrease of -9.2% over one year, bringing the median price per square meter to 3,450 euros.
The most notable declines
Paris, Bordeaux and Lyon are also among the cities having suffered the most significant reductions. In Paris, prices fell -6.7% year-on-year, while Bordeaux and Lyon saw declines of -7.5% and -8.6%, respectively. Notaries emphasize that these reductions are especially pronounced in cities where prices per square meter were the highest.
Regional disparities
Although the trend is downward in the majority of large cities, some still show high prices. Bordeaux, Lyon, Nice and Paris have prices above 4,000 euros per square meter. In contrast, Saint-Etienne presents the median price per square meter the lowest among the cities studied, just 1 140 euros.
More affordable alternatives
Other cities like Dijon, Orléans, Reims and Toulon offer more accessible optionswith prices around 2,500 euros per square meter. These cities could represent an opportunity for buyers looking for more moderately priced real estate.
Implications for future buyers
This price evolution could encourage potential buyers to consider investments in areas previously considered out of reach. Falling prices provide a window of opportunity for those looking to acquire real estate in large cities at more attractive prices.
Tenants could foot this landlord bill with a measure that could shake up the real estate market
This article explores recent changes in the real estate market in major French cities, highlighting a significant drop in prices of older apartments. With cities like Nantes, Paris and Lyon seeing record declines, the sector could see a revival of interest from buyers keen to take advantage of more favorable market conditions.
