Sales fall 17% in 2024, prices continue to fall

Monday 16th December 2024 10:29 AM

In 2024, the real estate market recorded a drop in sales of 17% over one year, according to the report of the Notaries of France published this Monday, December 16. This drop is accompanied by a reduction in prices, allowing buyers to gain space, but political and economic uncertainties are slowing down transactions.

The number of sales stands at only 750,000 in 2024, according to the Notaries of France, compared to 1.2 million in 2021. This figure includes transactions of old and new housing and building land. This massive drop is part of a real estate crisis that began in the summer of 2022, exacerbated by persistent political uncertainty since the dissolution of June 2024.

Housing prices continue to fall

Good news for potential buyers: the drop in prices is becoming widespread in the main metropolises. On average, a household devoting a third of its income to a monthly payment can buy an old property of 77 m², a gain of 3 m² compared to 2023. The most marked drops concern cities like Nantes and Lyon, where the prices fall by 9% or more.

In certain large cities, the differences remain striking: a monthly payment of 800 euros over 20 years allows you to acquire:

111 m² in Saint-Étienne,
41 m² in Marseille or Toulouse,
29 m² in Lyon,
only 12 m² in Paris.

However, Paris and Nice are exceptions with a slight increase or stagnation in prices. Nice also remains the second most expensive city in France for apartments.

Falling credit rates but slowing demand

Despite a drop in interest rates, which oscillate between 3.15% over 20 years and 3.55% over 25 years, the market remains sluggish. The slowdown is attributed to the economic situation and a climate of uncertainty which weighs on the confidence of real estate players. According to Me Priscille Caignault, spokesperson for the Notaries of France, “the market finally seemed to be approaching its landing point after two years of dizzying decline”.

Household wealth has also suffered, recording a decrease of 0.9% in 2023, according to a recent study by INSEE and the Banque de France. This trend marks a second consecutive year of decline, a direct consequence of the devaluation of real estate.

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