The real estate purchasing power of the French increased in 2024. (illustration) (Nattanan23 / Pixabay)
Thanks to the drop in interest rates, the real estate purchasing power of the French increased in 2024. According to various experts, the situation should further improve in the months to come.
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the improvement is not really due to the drop in prices. According to data from the Meilleurs agents site, they only decreased by 0.3% on average over one year in cities with more than 90,000 inhabitants (-1.2% in Paris). The improvement comes more from the fall in interest rates for real estate loans. For a 20-year loan, buyers can now expect a rate of 3.35%, compared to 4.2% a year ago.
Soon rates of 3%?
The real estate purchasing power of the French therefore tends to increase. With a monthly payment of 1,000 euros per month for 20 years, a buyer can now afford an apartment of 6 m² more than a year ago, estimates Best Rate in a study based on the 20 largest cities in France . The gain even reached 9 m² in Le Havre and Saint-Étienne, and 12 m² in Le Mans. A couple who wants to live in Reims or Dijon can now hope to afford a 66 m² T3 with these monthly payments.
In other cities, such as Bordeaux or Rennes, the difference is less striking since the gain is limited to 4 m². In Paris, repaying 1,000 euros per month for 20 years now allows you to buy a 19 m² apartment, compared to 17 m² last year. This represents an increase in real estate purchasing power of 12%. The situation should improve further in the months to come, since professionals estimate that rates will settle around 3% at the start of spring.
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