Written by The Meilleurtaux editorial team .Updated on
January 3, 2025 .
Reading time:
3 min
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Friday January 3, 2025 09:51by the Meilleurtaux Editorial Team
2024 marked a turning point for the real estate market. Interest rates on mortgage loans began to ease slightly since January and this decline continued throughout the year. As for prices, they continued to fall in many urban areas. The situation was therefore particularly favorable to buyers. The latter were able to gain additional square meters. It remains to be seen whether this trend will continue in 2025. Decryption.
An average interest rate of 3% over 20 years
Real estate rates are experiencing a slow decline. In December 2024, they averaged 3.4% over 20 years, compared to more than 4% at the start of the year. This trend is expected to continue in the first quarter of 2025, reaching 3%.
This drop in rates gives real estate purchasing power back to buyers. With equal monthly payments, they can invest several thousand euros more. Likewise, by encouraging competition in terms of borrower insurance, it is possible for them to further increase this margin.
What rate for your project?
A drop in prices for new and old properties
Prices of existing housing fell on average by -2.1% between November 2023 and November 2024. The decline is even more marked in new construction, where they fell by -10%.. Over the year as a whole, they fell by -5%.
Although moderate, this drop reflects the desire of sellers to quickly part with their goods. For their part, banks seem to be embarking on reconquering the real estate loan market, with many applications having been accepted.
An increase in real estate purchasing power in many cities
ImportantThanks to the cumulative drop in interest rates and prices, buyers saw their real estate purchasing power improve in 2024.
A simulation carried out by a professional in the sector reveals that with a net salary of 4,800 euros and by going into debt over 25 years, it is possible to gain an additional 10 m² in Montpellier and Lille, and up to 21 m² more in Saint-Étienne.
For their part, experts expect a continued decline in borrowing rates until the end of 2025. As for real estate prices, the trend should continue at least until the end of the first half of the year. The first six months of the year therefore look favorable for making a purchase.
- In 2024, property rates have gradually declined, averaging 3.4% in December.
- Prices have fallen significantly, both for new and old properties.
- This favorable situation is expected to continue into 2025, still offering attractive opportunities to buyers.
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The Meilleurtaux editorial team
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