The rise in rates has strongly affected the real estate market. While credit rates have seen a slight drop, the situation does not really seem to be improving in certain territories in France.
Indeed, the price of real estate has literally plummeted in these departments. Focus!
Some owners are still suffering from the real estate crisis. According to the figures, trading volume is slightly lower than last year. This drop stands at -23% in February, for old housing. While owners hope to realize capital gains when they sell their properties, they often come up against a different reality.
Today, buyers are becoming increasingly rare. This is explained by the sudden increase in credit rates, going from 1% to 4% for 20-year loans, in just two years. Faced with this, their purchasing power has fallen by almost 25%. Some then decided to put their project on hold due to their still weak financial capacities.
Faced with all this, owners are forced to review the cost of their property. And to comply with buyers’ new budgets, they were forced to lower their prices.
Which departments are most affected?
It should be noted, however, that this fall in real estate prices is not widespread. Some departments are more impacted than others. In the Rhône, for example, the average prices of apartments per m² amounted to 3,614 euros in April 2023, a year later in the same period, they regressed to 3,609 euros, a drop of 5.6%. Still in this dynamic, prices collapsed in Paris, with a drop of 4.8%, compared to 4.7% in Loire-Atlantique and 4.6% in Indre. In Gironde also, the percentage of plummeting prices reached 4.3%.
In Charente-Maritime, Cher and Vendée, the decreases are respectively -3.1% and -3.5%. In certain departments, such as Aisne, Ain, Ardèche or even Calvados, the price change in one year varies between -1.4 to -2.5%. But, you should also note that in certain departments, prices continued to rise as in the Alpes-Maritimes, Haute-Corse and Côtes-d’Armor.
You would have understood it, the real estate sector is not improving in certain departments in France. Owners are forced to adapt to market fluctuations to sell their homes. But, soon, the situation could change since the BCE plans to reduce key rates from June given the fall in inflation. Which could revive the real estate market again. To be continued…
