Table of Contents
- 1 Bordeaux, Nantes: a decline in increasing prices
- 2 Nice, Toulouse, Lyon: cities that are against them
- 3 Credit rates going down
- 4 Significantly improve the purchasing power of real estate
- 5 **Considering the observed purchasing power gains, what long-term social and economic consequences might arise from these trends for different socio-economic groups within French cities?**
Thanks to credit levels that have fallen significantly etc prices falling in several capitalshouseholds have regained real estate purchasing power.
In new construction, most cities have seen listing prices fall since the start of the year. This is what appears in the biannual barometer of the loan broker Empruntis that offers an analysis of the evolution of credit levels and prices in new homes, in partnership with the platform Find-un -logement-neuf.com.
Bordeaux, Nantes: a decline in increasing prices
The city of Bordeaux stands out for a significant drop in prices for new properties, on average – €55,200 for T3 compared to March 2024.
“This shows a big change in the new home market in the Gironde capital. This is a return to price levels more in line with economic reality and housing affordability.”indicates the search by Empruntis and Find-un-logement-neuf.com.
In general, the drop in prices can be explained as much by the natural change in the new and old property market as by the need for developers to find buyers at their destocking level.
Other cities are following the trend: Nantes, Marseille, Strasbourg, Montpellier and Lille recorded a drop in prices between -3.6 and -14.6% for T3 apartments.
In Paris, the fall is even more significant but it must be justified by the low number of new properties available for sale, which are located in peripheral areas and for program purposes.
Nice, Toulouse, Lyon: cities that are against them
Despite this general trend, some cities are resisting falling prices. Nice stands out with a significant increase in prices of +7.6% for a 3-room apartment.
“This increase is explained by significantly less supply and the impact of some high-end jobs on the average price.”indicates Empruntis. “As the Côte d’Azur is more of a market for second homes, the rate hike may have had less impact on buyers. »
In Toulouse, the average price of a 3-room apartment increased by +2.5%, while Lyon saw a slight increase of +1%. Increases, although small, that differ from the national trend.
“The price correction that has been going on for almost a year in real estate development is even visible in most of the 10 largest cities in France.”notes Céline Coletto, spokesperson for Find-un-logement-neuf.com. “With the number of Pinel investors becoming smaller and of course, a market that is naturally turning more towards first-time buyers, promoters are currently contributing to an offer that is more compatible with the new borrowing capacity of households and therefore more affordable. »
Credit rates going down
At the same time, interest rates are also continuing to decrease, reinforcing the attractiveness of the market. It has averaged -0.45 points since March 2024.
“This decline is amplified for new buildings due to a more accommodating policy of many banks towards energy efficient buildings.”Empruntis notes.
In October 2024, the average rate over 20 years (excluding insurance) increases between 3.45 and 3.55%, depending on the cities studied.
Significantly improve the purchasing power of real estate
As a result, out of the 10 largest cities in France, nine recorded a fall in the monthly budget dedicated to buying a new 3-room apartment, such as Bordeaux with -19%, Strasbourg with -11.4% or Lyon with – 2 .7%.
In detail, the monthly payments (without insurance) over 20 years for this construction are between €1,714 in Strasbourg and €3,746 in Paris:
- Paris: – 26% (drop reflected by the low availability of new housing), i.e. monthly payment of €3,746
- Bordeaux: – 19%, or a monthly payment of €1,741
- Lille: – 16.1%, or a monthly payment of €1,742
- Strasbourg: – 11.4%, or a monthly payment of €1,714
- Marseille: -9.3%, ie a monthly payment of €1,817
- Nantes: – 7.3%, ie a monthly payment of €1,836
- Montpellier: – 7.3%, ie a monthly payment of €1,776
- Lyon: -2.7%, ie monthly payment of €2,341
- Toulouse: – 1%, ie a monthly payment of €1,746
- Nice: + 3.7%, or a monthly payment of € 2,525
Household borrowing capacity in October 2024 compared to March 2024 for €1,000 of monthly credit payments (excluding insurance)
|
Ville |
Average credit rating in October 2024 |
Loan potential in October 2024 |
Average credit rating in March 2024 |
Loan potential in March 2024 |
Improvement of borrowing capacity |
|
Marseilles |
3.50% |
172 426 € |
4% |
165 022 € |
+ 4.5% |
|
Nice |
3.50% |
172 426 € |
4% |
165 022 € |
+ 4.5% |
|
Bordeaux |
3.45% |
173 192 € |
3.95% |
165 742 € |
+ 4.5% |
|
Montpellier |
3.50% |
172 426 € |
3.95% |
165 742 € |
+ 4% |
|
Paris |
3.55% |
171 664 € |
4% |
165 022 € |
+ 4% |
|
Lille |
3.50% |
172 426 € |
3.95% |
165 742 € |
+ 4% |
|
Lyon |
3.50% |
172 426 € |
3.95% |
165 742 € |
+ 4% |
|
Strasbourg |
3.50% |
172 426 € |
3.90% |
166 466 € |
+ 3.6% |
|
Nantes |
3.50% |
172 426 € |
3.90% |
166 466 € |
+ 3.6% |
|
Toulouse |
3.50% |
172 426 € |
3.90% |
166 466 € |
+ 3.6% |
Source: Loans
What are the prospects for new buildings in the short term?
“The government should announce new measures to support the new real estate sector. Among the expected measures, is the extension of the zero rate loan (PTZ) to the whole area and its extension to individual households,” reveals Nassima Khiari, head of banking relations of the Empruntis group. “In addition to the that, several French cities (for example Bordeaux) present situations where buying a new property could be cheaper than buying an old one, once the costs of co- related to it This situation is explained mainly by the decrease in the prices of properties that are not sold, but also by the new energy standards and the obligations related to the energy performance assessment (EPD) that make some old more expensive houses taking into account the renovation work.
For Céline Coletto from Find-un-logement-neuf.com, “there is a window of opportunity that cannot be missed. With the disappearance of Pinel on December 31, 2024, promoters continue to free up their stock by multiplying commercial offers and discounts. While a new energy level appears at the same time to be reached from 2025 in environmental regulations (RE2020), we can imagine that once this stock is cleared, commercial activity will come to end and prices begin to rise again in a limited manner. »
2024-11-24 04:30:00
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## Analyzing Real Estate Trends: Open-Ended Questions Inspired by the Article
This article presents a fascinating snapshot of the evolving French real estate market, particularly focusing on the purchasing power shifts in major cities. To delve deeper, here’s a breakdown of key themes and corresponding open-ended questions:
**I. Purchasing Power Gains:**
* The article highlights significant purchasing power improvements for real estate in many French cities. Beyond the numbers, what factors do you think are driving this trend?
* While several cities show positive trends, Nice experiences a slight increase in property prices. What could explain this outlier behavior compared to other cities?
* How might these purchasing power gains affect different socio-economic groups within these cities? Will everyone benefit equally?
**II. Interest Rate Dynamics & Loan Accessibility:**
* The article suggests thataverage credit ratings are decreasing while loan potentials increase. What are the implications of this seeming contradiction for individuals seeking mortgages?
* How sustainable are these positive lending trends? Are there any potential risks or downsides associated with increased loan accessibility?
**III. New Construction vs. Existing Housing:**
* The article mentions that buying new construction could be more cost-effective than older properties in some cities. What are the long-term implications of this trend for both types of housing markets?
* What role do energy efficiency regulations (like RE2020) play in influencing the relative attractiveness of new versus older homes?
**IV. Government Policies & Market Outlook:**
* The article alludes to potential government measures to stimulate the new real estate sector. What kind of impact could these measures have on the market, and who would be the primary beneficiaries?
* Looking ahead, what are the biggest challenges and opportunities facing the French real estate market in the coming years?
**V. Differentiating Perspectives:**
* The article presents insight from industry experts. How might the perspective of individual homeowners or renters differ from these expert viewpoints?
**VI. Broader Economic Context:**
* How do these real estate trends in France relate to broader economic factors, such as inflation, interest rate policies, and overall economic growth?
These questions are designed to encourage a multi-faceted discussion on the French real estate market, exploring various perspectives and potential implications for the future.
