More affordable prices and credits at lower rates, real estate is picking up in Center-Val de Loire

Since the Covid crisis, the real estate market has been stagnant and rates have been impossible for French people's wallets to keep up with. But the trend is towards a “return to normal” with falling prices and interest rates. City by city, discover the trends for the end of 2024.

With rates reaching 4%, the market slowed down until February 2024 in the region. Then it experienced a slight catch-up in the spring and summer with some of the buyers who had postponed their project to better rates. But for the FNAIM Centre-Val de Loire, “the real recovery will not take place before 2025“.

Because we must not confuse catching up with restarting. If the outlook is optimistic, market dynamism will once again be there when first-time buyers will be able to benefit from greater purchasing capacity. According to estimates from the National Real Estate Federation (FNAIM) of Centre-Val de Loire, even with this catch-up during the year, activity will have fallen by 8 to 10% in 2024.

New properties for sale are rare in the city nicknamed Sleeping Beauty. And buyers are still cautious. A trend confirmed by Stéphanie Bonis, from FNAIM du Cher. “Sellers are waiting to see how the real estate market evolves, she says. Compared to last year, we have between -17 and -20% of buyers”.

However, the dynamic into which the city has embarked, in particular by becoming European Capital of Culture 2028, could benefit real estate and attract tourists. House prices have been falling there for two years. And rental profitability is there for apartments, which could interest investors.

According to Stépahnie Bonis, “we should observe an increase in the acquisition of properties intended for short-term rental”.

Popular sectors: the Marronniers district, the Berruyers sector and Place Séraucourt. Townhouses or apartments range between €65,000 and €250,000. The Lahitolle district where a new real estate project could see the light of day.

In Blois, prices continued to increase for a long time despite all trends. After an increase of 8.1% in 2023, they are finally starting to fall by 4%. Demand remains strong and goods are moving quickly.

Popular sectors: the Blois-Vienne district, left bank, opposite the castle.

Prices exploded at the end of Covid, reaching €3,000/m². They have now fallen back to between €2,400 and €2,500 per m². But Orléans is still one of the cities where real estate is soaring. Prices increased over one year by 7%. Sellers who are too greedy, who sell above €600,000, struggle to find buyers.

Popular sectors: between Boulevard Alexandre-Marin and the Loire, near the cathedral in the heart of the city. The Source district is not attractive and even acts as a repellent. But could be a good compromise for those who wish to acquire property in Orléans.

A second tram line, new cycle paths, an increasingly pedestrianized city center… Tours is embarking on major works and this is attracting buyers. Prices have fallen by 6% per square meter and the market is dynamic.

“There has indeed been a small drop in prices over the past 18 months and we are observing a slight return of buyers with the drop in prices and rates, but it is not a clear increase. We are far from the prosperous market of 2021 where the We observed a peak in acquisitions.

Vincent Briand, FNAIM representative of Indre-et-Loire

Tours remains an interesting city for real estate investment since it is among the most expensive cities for rental per square meter. Properties rent there for an average of €15/m² while the median rent in the region is €13/m². “Due to the high prices for purchasing a property, there are few first-time buyers”indicates Vincent Briand.

Popular sectors: The city center with the halls and the university sector is always sought after, with prices per square meter ranging from €3,500 to €4,200. In Prébendes, houses sell for a high price, between 400,000 and 1.2 million euros. The most affordable neighborhoods remain Boulevard Tonnelé, the Starsbourg sector or Febvotte.

As in Blois, prices in Chartres have increased by 9% in one year. An increase in prices which can be explained by the demographic growth experienced by the city in recent years. Because in fact, the demand for real estate is increasing. The levels are similar to those of 2019.

Popular sectors: The historic center with Hôtel-Dieu, Grand Faubourg and Chanzy which are on average around €2,500/m²,

As in Bourges, there are not many properties offered for sale. And sales take longer to close. Buyers are mainly looking for properties in the center with a garage and garden.

But offers are extremely rare. The rental market in Châteauroux is extremely tight, with demand higher than the supply offered opposite.

In Indre, according to the Departmental Housing Information Agency, the new home market, already in great difficulty, has been “falling apart” for two years. It is Indre which is experiencing the greatest decline in the region's new construction market. They have seen a 55% drop in just one year.

Popular sectors: The center, the Strasbourg district, Saint-Christophe and the Hippodrome, the Marins, La Forge-de-l'Isle, Petit-Valençay and the Pierre-et-Marie Curie district.

The DPE, an energy performance diagnosis which is now compulsory, allows you to make savings at the time of purchase. Especially with F or G DPEs because putting them on the rental market will soon be impossible.

Sellers are therefore in a hurry to get rid of these thermal strainers. A price reduction of almost 15% is often possible, but it must be kept in mind that the savings will have to be used to finance part of the energy renovation work.