Housing Prices Fall in Major French Cities: Market Conditions and Predictions

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Published on
Saturday November 11, 2023 1:19 p.m.
by the Meilleurtaux Editorial Team

Housing prices have been falling for several months in the 10 largest French cities. In November, values ​​were down 1.9% over one year, indicates the latest national barometer from Meilleurs Agents. The capital is particularly affected with an average which lost 0.7% over one month in October, a situation not seen since 2009 at the time of the real estate crisis.

Prices falling in 8 of the 11 largest French cities

According to Best Agents,

Parisian real estate prices fell by 5.6% in one year, bringing the average per square meter down to 9,733 euros as of November 1.

This observation confirms the conclusions of the National Real Estate Federation (Fnaim), which recently announced

A decline of 5.2% in this indicator over 12 rolling months.

In a press release, the digital real estate platform explains that

Prices are adjusting to a new context marked by the rise in interest rates and the resulting drop in demand.

To attract buyers in large cities, owners are forced to lower requirements.

Important8 large cities among the 11 in the country experienced a slowdown in property prices between October and November 2023.

• The movement is particularly marked in Nantes, where the average per square meter stands at 3,746 euros (-0.8% over one month).
• In Lyon, housing is more expensive, at 4,932 euros per square meter, but the slowdown is more contained with -0.5%.
• It’s as much as in Marseille, but properties are more affordable in the Marseille city, with a square meter costing 3,745 euros.
• In Strasbourg and Rennes, buyers only gained 0.3% on prices, which amounted to 3,978 euros and 4,012 euros respectively.

What rate for your project?

Market conditions more favorable to buyers in the coming months

Although Île-de-France has experienced relative stability since the end of the health crisis, prices are now plummeting throughout the region. As expected, the previously most inaccessible departments recorded the most significant declines.

In one year, apartments located in Hauts-de-Seine have depreciated by 4.7%, and are now selling at 6,897 euros per square meter. A similar scenario is observed in Val-de-Marne (-3.4%; 5,387 euros) and in Seine-Saint-Denis (-2.6%; 4,336 euros).

The coming months could be favorable for candidates for property ownership. Indeed,

ImportantMarket professionals anticipate a continuation of the downward trend due to high interest rates and stagnant household incomes, which are dampening demand.

For Best Agents,

This should last until the end of the first quarter of 2024 at least, with the possibility of a seasonal recovery.

It should be noted that only departments with a high proportion of second homes, particularly on the coast or in the mountains, continue to record an increase in their prices.

Exceptions are, however, noted, namely departments which have a significant proportion of second homes, particularly in the mountains or in coastal areas.