If the drop in the volume of real estate transactions is confirmed, according to the study by the Chambre des notaires de l’Hérault, between July 2023 and June 2024, it is accompanied by a drop in prices.
The figures speak for themselves and are all negative, whether in terms of volume of real estate transactions or in terms of prices in Hérault. All properties combined, transactions recorded, between July 2023 and June 2024, a decrease of 29%, with peaks at -51% for new apartments compared to -21% between July 2022 and 2023, -26% for old houses (compared to – 11.3%) and – 24% for old apartments (compared to – 9%) and – 40% for building land (compared to – 25.6%).
“We went from 32,640 sales last year to 23,200, knowing that this decline had already largely started last year,” comments Laurent Vialla, notary in Montpellier and president of the Chambre des notaires de l’Hérault. Figures which reflect the current situation and from which our department is no exception. In addition to the ever-present economic crisis, there was added the political instability following the dissolution of the National Assembly last June, making the French less confident in the future.
A price level that is too high in Hérault
“But the fall in the volume of transactions can also be explained by a price level that is too high in Hérault and by the fact that banks have until now been lending less easily”comments Me Françoise Cadène, notary in Mèze and spokesperson for the Hérault Chamber of Notaries. The domino effect followed: this drop in transaction volume was accompanied by a drop in prices.
Result: a drop in prices for all built assets
This drop concerns both old apartments (-0.7% over one year) with a price of €3,360/m²; new apartments (-0.8% over one year), with a price of €4,680/m²; and old houses (-2.4%), with a median sales price over one year of €260,000. In terms of types of property sold, old 2 and 3 room apartments represent 61% of sales, and 80% for new apartments.
Only the land market shows an annual increase of 6.8%, with a median sales price over one year of €119,500. “It is not a blatant drop, but there is still a drop in prices even though this has not happened in Hérault for years”notes Me Françoise Cadène. And to hope that this downward trend will revive the dynamic of real estate transactions, provided that bank rates decrease and tax incentives are taken.
Montpellier does not escape the drop in prices
In the real estate market for old apartments, the biggest price drops concern the districts of La Martelle (- 16.9%), La Chamberte (- 11.6%), and more surprisingly Aiguelongue (- 9.9 %), Alco (- 7.6%), the historic center (- 7.3%), La Pompignane (- 6.7%) and Les Arceaux (- 5.4%). “If certain districts are not highly rated, for those that are, they suffer both from prices which were far too high, but also from the work in progress which makes them less attractive, particularly in the historic center and Les Arceaux”considers Me Cadène. Conversely, the neighborhoods of Très d’Arènes and Les Aubes recorded price increases per median m², respectively +7.8% and +5.2%, closely followed by Millénaire-Grammont, +4.1%. Or neighborhoods where we move away from the city center, more affordable and more residential.
Midi libre – A. LOP
Aiguelongue the most expensive in new buildings, Port-Marianne in old buildings
When it comes to new apartments, we don’t necessarily find the same distribution. Thus, the Aiguelongue district displays a median price per m² reaching the value of €6,240/m², much higher than that of Montpellier, all districts combined (€4,680/m²). It is the most expensive area. It is followed by Beaux-Arts (€6,090/m²), Near Arènes (€5,730/m²) and Port-Marianne (€5,440/m²). Finally, for old houses, the median sale price in Montpellier, i.e. €385,000, recorded a drop of 1.4% over one year, but remains well above the median sale price in Hérault, i.e. €260,000. €. “We arrived at prices that were too expensive, which explains the transfer to the upper cantons and the Pays Biterrois”concludes Me Cadène.
