For several years, the French real estate market has been going through turbulence. New housing prices, although generally stable, show notable variations depending on the region. While high interest rates have made it more difficult for many households to finance real estate projects, certain sectors are seeing their prices fall significantly. Discover here a detailed overview of the current situation and what this means for potential buyers.
Fluctuations in sales and prices of new goods
The new real estate market in France shows signs of general stagnation despite a perceptible drop in prices in certain cities.
The third quarter of 2024 saw a decline in new home sales 2.5% over one year.
This trend is marked by a contrast between so-called “block” sales to institutional investors and social landlords, which fell by almost 13%, and those to individuals, which rebounded by 4.3%.
Pascale Boulanger, president of the Federation of Real Estate Developers (FPI), underlines that the rental investors are the main driver of this slight rebound.
Sales to the latter increased by 5%, while those to owner-occupiers grew by only 3.9%.
However, this increase must be qualified, as it could be temporarily stimulated by the upcoming end of certain advantageous tax measures.
The impact of tax policies on the market
A key element influencing purchasing decisions concerns tax measures, such as the recent removal on December 31, 2024 of a mechanism for reducing income tax for the purchase of new housing intended for rental at low rents.
This change has pushed some investors to accelerate their acquisitions before this tax advantage disappears, thus creating a temporary advantage in the market.
Despite these temporary influences, it should be noted that developers are forced to pass on final prices increasing land costsnew construction standards and materials.
These factors add to an already palpable complexity in the world of new real estate, making long-term projections difficult.
Regional trends: where are prices really falling?
If new housing prices seem to be stagnating nationally, certain urban areas are experiencing significant declines.
Indeed, after two years of real estate crisis, several new housing programs are showing significant price reductionssometimes greater than 10%.
These opportunities are mainly found in cities where the market remains dynamic despite everything.
Here are some of the cities where the discounts are most notable:
- Bordeaux : A notable drop in prices, attracting many investors interested in low-cost projects.
- Toulouse : The city also shows significant decreases, as part of local recovery programs.
- Nantes: Known for its economic dynamism, Nantes is seeing its prices fall, offering attractive investment opportunities.
Why are some cities more affected than others?
The reasons can vary, but often the conjunction of several factors such as market saturation local area, the increased availability of building land and the specific efforts of municipalities to attract new residents play a crucial role.
Promoters are readjusting their commercial strategy to remain competitive in the face of an uncertain financial environment.
Perspectives and advice for future buyers
For those thinking of buying a new home, vigilance is required. Here are some practical tips for navigating this changing market:
- Carefully study the local market: Understand the specific dynamics of the city or neighborhood that interests you. Regional statistics can hide realities that vary greatly from one area to another.
- Seize tax opportunities: Tax schemes like the one mentioned above can have a significant impact on your long-term profitability. Find out what benefits are still available.
- Negotiate with promoters: Amid declining sales, developers may be more willing to negotiate price or offer additional perks.
It is also crucial to keep an eye on overall economic developments that influence interest rates and general financial conditions. This can greatly affect your borrowing capacity and therefore your real estate project.
