the plummeting prices are gaining momentum and causing concern

the plummeting prices are gaining momentum and causing concern
the plummeting prices are gaining momentum and causing concern
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Real estate crisis: the plummeting prices are growing and causing concern

Written by
Luigi Delmet

May 28, 20242 min. reading

Is the stone rolling down the slope? In any case, the figures are alarming. For the third consecutive quarter, property prices are contracting in France, but the most worrying thing is that this trend is growing. How far will she go?

Borrowing rates noted on 05/28/2024

A market in turmoil

As the Notaries-Insee indices reveal today, the decline in the first quarter of 2024 reached 5.2% year-on-year. A property purchased at the start of 2023 has therefore lost, on average, more than 5% of its value in a few months. The decrease is more marked for apartments (-5.5%) than for houses (-4.9%), but what is undoubtedly more worrying is the dynamic observed. In fact, the fall in prices accelerates over the months.

Annual variation of real estate prices in France

Quarter

Price variation

2023 Q3

– 1.8%

2023 Q4

– 3.9%

2024 Q1

– 5.2%

The figures correspond to the evolution of prices in the old over one year, per quarter. Sources: Insee, Notaries of France – ADSN Group, Notaries of Greater Paris – PNS.

Île-de-France at the heart of the crisis

Another aspect highlighted by the INSEE figures: the Paris region is at the heart of this negative spiral. The value of Ile-de-France housing decreased in the first quarter by 8.1% year-on-year. An interesting point is the fact that, contrary to what is observed across the country, it is the houses (- 8.4%) which are eroding the most.

Outside Île-de-France, the trend is identical but significantly less strong. The drop this time only reached 4.2%. However, there are certain disparities depending on the areas:

  • 5.2% in Auvergne-Rhône-Alpes;
  • 5.3% in Hauts-de-France;
  • 1.8% in Provence-Alpes-Côte d’Azur.

Finally, the annual number of real estate transactions continues to fall, reaching 822,000 at the end of March 2024 (compared to 931,000 last September). It remains to be seen whether the recent drop in rates will be able to bring some color back to a market that continues to fade.

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