Pascal Pancrazio (SdH/LPI)
The Chambre du Rhône of the FNAIM organized last week an update on the real estate market in Lyon. In particular, the situation of the old real estate market was discussed.
On May 29, the FNAIM organized an update on the real estate market in Lyon, in the presence of the President of the Chamber, Pascal Pancrazio, but also several vice-presidents, including Deanna Nociar, deputy vice-president for transactions.
The impact of rising rates
Firstly, the President of the Chamber returned to the market context. The latter suffered a few months ago the repercussions of the rise in interest rates, which heavily affected the real estate purchasing power of households, generating de facto a fall in transactions, and a crisis in the sector.
“We know how it started, particularly with the interest rates. Last year, a quadrupling of rates in a few months had almost never happened in the history of the evolution of interest rates. »
Pascal Pancrazio
And this economic development has been accompanied by new constraints emanating from the “Climate and Resilience” law.
“We are in a restrictive environment. Obviously, the FNAIM is fully in line with the ‘Climate and Resilience’ law. We support, we are forceful of proposals on these elements, but the fact remains: it creates obligations, particularly for DPEs, additional stress in a framework which is already extremely stressful.
Pascal Pancrazio
And the sudden drop in transactions after fairly flourishing 2021 and 2022 got the better of certain players in the sector. The president of the Chamber of Rhône has in fact mentioned an outbreak of failures of real estate firms. “Our statistics are almost times four compared to normal,” he laments.
A bond market
Concretely, only forced sales or purchases, implied by an inheritance, or even a separation, resist.
“Concretely, what is happening on the market is that supply no longer meets demand. People can no longer find housing. We are in a bond market. We are not in a market of intention, or of comfort. When we really need housing, we have an obligation, and in this case, we buy or sell, but the market is quite constrained.”
Pascal Pancrazio
Housing crisis
Also, in view of discussions with entrepreneurial organizations such as MEDEF or CPME, finding accommodation now constitutes a major difficulty for potential employees in the Lyon region, due to a rental offer at half mast, notes the president of the Chamber of Commerce. Rhône of the FNAIM. And the same problem also applies to administrations.
“It’s really a housing crisis, and we are still dealing with an almost fundamental right. Housing is almost constitutional. It is a duty for a State.”
Pascal Pancrazio
22% drop in sales in the Rhône
Deanna Nociar, the vice-president of the Chamber responsible for the transaction, then gave an update on the existing market. And transactions remained in decline at the end of February in the Rhône, with 20,886 sales, a decline of 22.2% over 12 rolling months. This development is thus in line with that recorded over the same period in the Auvergne-Rhône-Alpes region. In this territory, transactions fell by 20.3%, to 109,213 units. This regional total thus remains very far from the 143,267 transactions recorded in 2021, and even the 113,177 recorded in 2017. In the region, it is in Savoie that the decline is the most limited (-15.2% to 352,320 transactions), then even though it is most marked in Drôme (-23.1% to 277,573 transactions).
By municipality, we note that the number of transactions was the highest in Lyon (6,223 sales), Villeurbanne (2,114 sales), Caluire-et-Cuire (612 sales), Villefranche-sur-Saône (589 sales), Saint- Priest (482 sales), Vénissieux (475 sales), Bron (411 sales) and Vaulx-en-Velin (363 sales).
Significant drop in prices in Auvergne-Rhône-Alpes
Over one year, with the notable exception of Cantal (+0.5% to €1,241 per m²), prices are down in all departments of Auvergne-Rhône-Alpes over one year. Only three departments recorded price drops of less than 1%, such as the Loire (-0.3% to €1,658 per m²), Haute-Savoie (-0.4% to €4,623 per m²), and Savoie (-0.7% to €3,779 per m²).
In all other departments, the drop is greater than or equal to 1%, like the Auvergne departments such as Allier (-1% to €1,154 per m²), Haute-Loire (-1.5% to €1,375 per m²), and Puy-de-Dôme (-1.7% to €1,504 per m²). The drops are more significant in Ain (-1.6% to €2,450 per m²), Ardèche (-1.7% to €1,899 per m²), or Drôme (-1.9% to €2,232 per m²), but especially in Isère (-2.6% to €2,641 per m²) and in the Rhône (-5.6% to €3,612 per m²).
We will also note a fairly significant drop in values in large cities, if we except Annecy (+0.7% to €5,582 per m²) which sees its prices increase and Aix-les-Bains (-0.7% at €4,459 per m²) which is just seeing its prices erode. Over one year, the decline is clearer in Saint-Étienne (-1.4% to €1,417 per m²) and is even very significant in Grenoble (-5.3% to €2,619 per m²), Clermont-Ferrand (-3.7% to €2,216 per m²), Villeurbanne (-7.9% to €3,595 per m²), or Lyon (-7.1% to €4,492 per m²). Across the region, prices fell by 2.4% over one year, to €2,774 per m².
The federal president of the FNAIM, Loïc Cantin, was present during this Lyon market update. And for him, this price adjustment is a good thing.
“The fall in prices has begun. It is around 5% over a rolling year. We have just witnessed three consecutive quarters of falling prices. It is beneficial for first-time home buyers.”
Loïc Cantin
In Lyon, by sector, we note that the 6e (€5,286 per m²), 2e (€5,061 per m²) and 4e (€4,963 per m²) districts have the highest prices, ahead of the 1er (€4,948 per m²), 3e (4,516€ per m²) and 7e (€4,424 per m²). The 8e (€3,991 per m²), 9e (€3,846 per m²) and 5e (€3,792 per m²) districts are the least expensive.
Towards stabilization at the end of the year
The president of the FNAIM, after welcoming the announced drop in ECB rates, noted that this movement would allow the market to revitalize itself. The federation is therefore planning a plateau at the end of the year, thanks to prices which will have decelerated by 5% to 8% at the end of the year.
Loïc Cantin also called for the implementation of measures such as loan portability, but also tax exemption on rental income after 10 years of rental.
“It’s an interesting signal: it allows for stability in the rental stock over 20 years. “It’s an interesting signal for someone who wants to retire.”
Loïc Cantin
Someone who makes an effort to save from the age of 55, during the 10 best years of their activity, will thus be able to benefit from additional income when they retire. This exemption, lasting 10 years, could even be extended to 15 years in the event of energy renovation work, suggests the president of the FNAIM.
“Meanwhile, the State continues to collect transfer taxes, the State supports the market, and collects VAT revenue, and with a deferral of 10 years.”
Loïc Cantin
If you enjoyed this article, please take the time to leave a comment or subscribe to the feed to receive future articles directly in your feed reader.
The median price of apartments fell by 5.1% in Lyon in 2023
The price per m² has fallen below €5,000, according to Rhône notaries who organized their traditional press conference on Thursday to present real estate figures.
Fall in sales and real estate prices in the Rhône in 2023
This is what the FNAIM indicated in its economic report for Lyon and the Rhône.
The FNAIM du Rhône expects prices to fall by 10% in 2023
The FNAIM Chamber of the Rhône took stock of the Rhône real estate market this Monday. Transaction volumes are expected to decline by 20% over the year.
Towards a drop in prices in 2023 in Rhône-Alpes
This is the observation drawn by the notaries of the former region, who published their economic report for the first quarter.
Real estate: 2022, year of drop in volumes in Lyon
The Rhône Chamber of Notaries announced its 2022 report on real estate figures for the Rhône department and the Lyon Metropolis at the end of April. If prices have increased further, transaction volumes have declined compared to a record 2021.
“The real estate market is seized up”
Pascal Pancrazio is the president of the FNAIM du Rhône chamber. We discuss with him the major trends in the real estate market in 2022 in Lyon and the department, as well as the outlook for 2023.
Real estate in the Rhône: erosion of sales, but prices which remain stable
The Rhône Chamber of Notaries organized a market point on Thursday on the real estate market in the Rhône department and the Lyon Metropolis.
Real estate: rising prices and eroding sales
This is the finding of the monthly barometer revealed by the FNAIM.
Projects for the Rhône within the CPER
In the State–Region plan contract (CPER) presented on Friday, there are more than 67 million euros of investments for the Rhône department.
Real estate prices up in the Rhône but down in Lyon
FNAIM announced Thursday the figures for the Rhone real estate market at the end of the first half.
Real estate: the confirmed attraction for the greater Lyon suburbs
The increase in median prices of apartments and houses in the Rhône surpasses that of Lyon. The attraction for the periphery, already perceptible in 2020, was confirmed in 2021.
2021, record year for real estate in the Rhône
The Rhône Chamber of Notaries presented this Tuesday the figures for the real estate markets in the department for the year 2021. Prices and volumes were trending sharply upwards in Lyon, but also in the outer suburbs.
Real estate: record transactions and prices in the Rhône in 2021
The Rhône Chamber of the FNAIM shared this Thursday its assessment of the real estate market in the Rhône and the Metropolis over the past year.
A well-oriented real estate market in the first half
Volumes and prices are still on an upward trend in the Rhône. This is the observation drawn up this Thursday by the Chambre du Rhône of the FNAIM.
Real estate prices still rising sharply in Rhône-Alpes
In the departments of the former Region, we note a fairly clear increase in real estate prices, particularly houses.
