In its latest study published on November 19, INSEE calculates the rise in real estate prices since 2000. In just over 20 years, the values have been multiplied by 2.6 throughout the territory. And who says average, says disparities. Unsurprisingly, the areas where prices are the highest are those experiencing strong tension in the real estate market: metropolises and tourist areas.
The evolution of real estate prices since 2000
Since the beginning of the 2000s, the French real estate market has experienced profound changes, marked by periods of growth, stabilization and economic challenges. Here are the major trends that have shaped the French real estate landscape.
The years 2000-2007: a booming market
The first half of the 2000s was characterized by a sustained growth in property prices. Between 2000 and 2007, we observed a spectacular increase in real estate values, particularly in large metropolises such as Paris, Lyon and Marseille.
The main characteristics of this period include:
- An average annual price increase of 10 to 15%
- Historically low bank interest rates
- Constantly increasing real estate demand
- Confidence of investors and households
The 2008 crisis: a decisive turning point
The global financial crisis of 2008 (subprime crisis) abruptly interrupted this positive dynamic. The French real estate market, although less impacted than other European countries, experienced a significant slowdown.
Main impacts:
- Transaction deceleration
- Stabilization then slight decline in prices
- Tightening of credit granting conditions
- Implementation of the Scellier system to support new real estate
- Increased investor caution
2010-2015: period of reconstruction and adaptation
This period was marked by a gradual reconstruction of the real estate market. Prices have stabilized in many regions, with increasingly marked territorial disparities.
Key elements:
- Gradual resumption of transactions
- Growing differentiation between urban and rural areas
- Emergence of new attractive investment zones
- Development of the energy renovation market
2015-2020: rebirth and renewed attractiveness
The years 2015-2020 saw a significant rebound in the French real estate marketwith sustained price growth in major cities.
Main trends:
- Average price increase of 3 to 5% per year
- Reinforced attractiveness of regional metropolises
- Development of rental investments (Pinel deviceex-Duflot and ex-Scellier)
- Emergence of new technologies in real estate transactions
2020-2024: the post-Covid period
The Covid-19 pandemic has profoundly transformed French real estate dynamics. We observe significant structural changes:
- Increased search for outdoor spaces
- Development of teleworking
- Growing interest in peri-urban and rural areas
- Price pressures linked to inflation and interest rates
Real estate prices: heterogeneity depending on the territory
Between 2000 and 2022, INSEE (National Institute of Statistics and Economic Studies) indicates that the real estate prices of old housing have been multiplied by 2.6. Coupled with the progression of real estate loan interest rates since 2020 and rules for granting HCSF (High Financial Stability Council) in place since 2021, this cumulative increase is a barrier to property ownershipparticularly for first-time buyers.
France now has fewer households owning their main residence than in 2014approximately 6 out of 10 households.
More expensive real estate in major cities
The real estate market is the translation ofbalance between supply and demand. Notwithstanding the intrinsic quality of the property, the attractiveness of a region, its density, the high price of land are factors which push prices upwards. In the major city attraction areassupply does not follow demand.
In urban areas of less than 50,000 inhabitants, the median price of a house sold between 2020 and 2022 is estimated at €1,500/m², compared to €3,060/m² in areas of 700,000 inhabitants and more. The observation is the same for apartments: €2,430/m² compared to €3,260/m².
Median price per m² of old housing sold between 2020 and 2022 depending on the area:
| Zone | Houses | Apartments |
| Rural areas | 1 390 € | 2 770 € |
| Less than 50,000 inhabitants | 1 500 € | 2 430 € |
| Between 50,000 and 199,999 hours. | 1 720 € | 1 830 € |
| Between 200,000 and 699,999 hours. | 2 160 € | 2 500 € |
| 700,000 hours. and more | 3 060 € | 3 260 € |
| Île-de-France | 3 430 € | 5 680 € |
| Metropolitan France | 2 040 € | 3 170 € |
Inflation in tourist areas
Real estate prices are also higher in tourist areaswhere the density of second homes is highest. Excluding tourist metropolises such as Paris, Nice, Montpellier, Lyon to name but a few, the price of apartments is €2,770/m², compared to €1,830/m² in medium-sized areas.
They take the elevator Val d'Isère, area where real estate prices are the most expensive in France : 50% of housing has a price above €11,400/m²!
Perspectives and influencing factors
Several elements will continue to influence the French real estate market:
The French real estate market has demonstrated its resilience and capacity to adapt since 2000. Despite crises and societal transformations, it remains a dynamic and strategic sector.
