The French real estate market is currently going through a tumultuous period. Between the drop in transactions and the fluctuation of prices, it is essential to understand the dynamics at work to better understand this structural crisis. This article offers you a complete overview of the latest trends and implications of the real estate sector in France.
A marked drop in transactions
A general decline in new and old properties
THE real estate transactions experienced a significant decline over the past year. On average, sales of new housing fell by 50% in certain regions such as Seine-Maritime and Eure.
The whole of France is not spared from this phenomenon, with a general decline in transactions.
This trend is also observed in the housing market.ancien where trading volume decreased noticeably.
Notaries record a drop of 23% in Seine-Maritime and 26% in Eure, thus reflecting a similar national average.
This decrease indicates a growing reluctance among potential buyers in the face of current economic uncertainties.
The impact on building permits
Alongside the drop in transactions, we also see a drop in building permit.
The construction of new housing is slowing down, exacerbated by the reduction in new construction and sales of building land.
In Eure, only 680 land sales were counted, a particularly low figure which clearly illustrates the seriousness of the situation.
Consequently, the real estate available is not renewed sufficiently to meet potential demand.
This could lead to pressure on the prices of available goods in the medium term, despite the current situation which is seeing them decline.
Price evolution: regional disparities
Price variations in old real estate
In the sector ofold real estateprices show contrasting developments depending on the region.
For example, in Seine-Maritime, the price per square meter fell on average by 2.2%, a comparable trend for apartments and houses.
In Eure, houses saw their prices fall by 2.7%, while those of apartments fell by 1.1%. These reductions mean that the market is trying to adjust to currently sluggish demand.
However, these figures also show a slight resistance of valuesprobably due to the scarcity of new offers.
The rise in new housing prices
Unlike the old market, price of new housing have, surprisingly, recorded an increase.
In Seine-Maritime, they increased by 3%, and in Eure, this increase even reached 15%. This growth can be attributed to several factors:
- Increased cost of building materials
- Stricter environmental regulations
- Limited supply of new goods
These increases risk accentuating the difficulties ofaccession to property for many households, thus aggravating the already worrying situation in the real estate market.
Focus on the sought-after properties
Small stores at the top of purchases
Despite the crisis, certain segments of the market are still finding buyers. Small areas such as two and three rooms continue to attract significant interest.
This type of property responds to strong demand, mainly driven by first-time buyers or investors looking to rent.
These properties are favored because of their more affordable cost and their ease of finding a buyer, particularly in urban areas or near university centers.
This persistent demand contributes to maintaining a certain activity on the marketdespite unfavorable economic conditions.
The appeal of individual houses
At the same time, the individual houses retain their appeal, especially in peri-urban or rural areas.
The effect of the Covid-19 pandemic continues to be felt, with buyers showing a marked preference for larger, greener living spaces.
However, supply is becoming scarce and prices remain relatively stable or even increasing in certain regions, making these less financially accessible acquisitions.
Nevertheless, this trend underlines a lasting aspiration of the French for a more pleasant and healthy living environment.
Recommendations for buyers and sellers
Buyer Strategies
For those considering a purchase, it is vital to carefully assess your needs and budget before taking the plunge.
Prioritizepurchase of small areas or considering alternative locations may offer interesting opportunities.
It is also recommended to closely monitor market developments to detect good deals.
Tips for Sellers
On the sellers’ side, adapting your offer to current market expectations is crucial. Highlight ecological potentialities and energy savings potential of a property can appeal to customers keen to reduce their ecological footprint.
Finally, it is prudent to make a realistic estimate and carefully prepare the presentation of the property to maximize the chances of quick sale and at a good price.
