Because these buyers, often young families, have more and more difficulty making ends meet. Firstly because of the banks, which are now committed, on the orders of the Banque de France, to ensuring that borrower repayments do not exceed 30% of their resources. Secondly, because new home prices have entered into an infernal inflationary spiral. It is the lack of manpower, on the construction sites, because of the Covid, which increases the cost of the construction sites. It is also the raw materials, again because of the Covid, which are on the rise: +30% for wooden windows and doors and between +40 and +50% for metal, which is nevertheless necessary in constructions. The result? A vertiginous price increase of 5.7% over the last 12 months, compared to general inflation which does not exceed 1.3% per year.
According to the Real Estate Laboratory, an independent organization who just released his 5th barometer of new real estate prices in towns with more than 45,000 inhabitants, the average price of a new apartment is now €5,195/m². We have thus seen, in recent months, developers raise the schedules of some of their programs several times, depending on the pressure of demand… Especially since new buyers, with deep pockets, are interested in the sector: institutional investors. Banks, funds, insurers are now competing to buy, by entire buildings, classic residential programs and serviced residences, which are suddenly withdrawn from the market by developers, reducing the supply available to individuals by thousands of apartments. At the next Simi show, which brings together from December 8 to 10 in Paris, real estate and investment professionals, we are only talking about that… For these newcomers to this market, residential rental real estate has become a very competitive new asset class. It brings in, according to the AEW manager’s latest calculations, more than 5% per year. And therefore becomes very attractive, especially if we compare it to the sometimes negative yield of government bonds.
For Franck Vignaud, director of the Laboratoire de l’Immobilier, “the acceleration of the price increase has become widespread: 9 of the 15 largest municipalities (compared to 3 six months ago) recorded a price increase of more than 6 %.”
Big increases in the metropolises
In Paris, the “technical” break in prices observed 6 months ago is well over: in one year, the prices of new housing have increased by 3.4% to almost €12,500/m² (this is a little over 10,000 €/m² in the old one according to Top agents). And some large cities, very popular for their relaxed lifestyle, have experienced a sharp acceleration in price increases already observed last year. This is the case of Rennes, where prices increased by 9.7%, Toulouse (+8.4%) and Grenoble (+8.1%). But it is around Paris, in the inner suburbs and the medium-sized towns of the outer suburbs, that the outbreak is most felt. Levallois-Perret and Boulogne-Billancourt, with average prices around €12,000/m², are now more expensive than new supply in the 18th century.th district of Paris.
In Ile-de-France, the rise in prices of new housing tends to accelerate, driven by the lack of supply, while the region is the one where the pressure of demand is the strongest in all of France.
The Parisian suburbs are on fire
Ten suburban towns (Clamart, Issy-les-Moulineaux, Clichy, Colombes, Rosny, Massy, Noisy, Saint-Ouen, Ivry and Meudon) out of the 35 reviewed by the Real Estate Laboratory show a higher price increase (sometimes double!) the national average. Clamart, in the Hauts-de-Seine, thus won the unenviable title of city where prices fell the most, with an increase of 8.6% in one year, four times more than inflation! In the same department, there are now only two cities left where apartments sell for less than 6,000 €/m². But where Colombes saw its prices rise by more than 7%, Nanterre managed to contain inflation at 2.1%, thanks in particular to an energetic policy of the marie which both promotes construction but imposes a price policy mastered on all the programs authorized on its territory. Today, observes Franck Vignaud, director of the Real Estate Laboratory, “Seine-Saint-Denis remains the last sector of the inner suburbs where buyers can still find new housing at less than 5,000 €/m²”. Thus, municipalities such as Bobigny, Bondy, Drancy, Le Blanc-Mesnil, Noisy-le-Grand and Rosny-sous-Bois are still affordable, even though they will soon host a station of the future. Grand Paris Express…
You will find below the evolution of new housing prices in three market categories: Ile-de-France, the fifteen main French cities and the other major cities in France.
Evolution of new housing prices in Ile-de-France
Sandal. | Communes | Low price (€/m²) | Average price (€/m²) | High price (€/m²) | Evolution over 12 months |
75 | PARIS 13 | 11 752 | 13 149 | 14 368 | 7,8% |
75 | PARIS 15 | 12 244 | 13 708 | 14 002 | 0,5% |
75 | PARIS 18 | 9 900 | 10 727 | 11 105 | -2,7% |
75 | PARIS 19 | 12 066 | 12 556 | 13 295 | 8,3% |
75 | PARIS 20 | 10 669 | 11 957 | 12 953 | 8,4% |
77 | CHELLES | 4 561 | 4 700 | 5 207 | ND |
78 | SARTROUVILLE | 4 322 | 4 598 | 5 223 | 4,6% |
78 | VERSAILLES | 8 293 | 8 706 | 10 017 | 3,1% |
91 | EVRY | 3 415 | 3 512 | 3 671 | ND |
91 | MASSY | 5 154 | 5 412 | 5 603 | 6,4% |
92 | ANTONY | 6 003 | 6 820 | 7 126 | 4,5% |
92 | Asnieres-sur-Seine | 6 224 | 6 585 | 6 918 | 3,4% |
92 | BOULOGNE-BILLANCOURT | 11 407 | 11 929 | 12 404 | ND |
92 | CLAMART | 6 504 | 6 918 | 7 221 | 8,6% |
92 | CLICHY | 7 168 | 7 866 | 7 989 | 7,2% |
92 | COLOMBES | 5 253 | 5 582 | 6 224 | 7,1% |
92 | COURBEVOIE | 8 285 | 8 402 | 8 506 | ND |
92 | ISSY LES MOULINEAUX | 9 461 | 9 782 | 11 333 | 7,5% |
92 | LEVALLOIS-PERRET | 12 336 | 12 099 | 13 069 | 4,4% |
92 | MEUDON | 6 496 | 6 559 | 6 666 | 5,7% |
97 | NANTERRE | 5 630 | 5 808 | 5 922 | 2,1% |
92 | RUEIL-MALMAISON | 7 442 | 7 565 | 7 767 | 4,9% |
92 | SURESNES | 7 958 | 8 637 | 9 205 | 4,4% |
93 | AUBERVILLIERS | 4 763 | 5 111 | 5 533 | 5,4% |
93 | AULNAY SOUS BOIS | 4 592 | 4 668 | 4 708 | ND |
93 | BOBIGNY | 4 582 | 4 657 | 5 144 | 5,4% |
93 | BONDY | 3 896 | 4 095 | 4 418 | 3,8% |
93 | DRANCY | 4 003 | 4 153 | 4 627 | 5,2% |
93 | EPINAY-SUR-SEINE | 3 805 | 4 118 | 4 757 | ND |
93 | WHITE MESNIL | 4 146 | 4 425 | 4 661 | 4,4% |
93 | NOISY THE GREAT | 4 675 | 4 835 | 5 569 | 6,2% |
93 | ROSNY SOUS BOIS | 4 840 | 4 987 | 5 192 | 6,6% |
93 | ST OUEN | 6 440 | 6 694 | 7 324 | 6,0% |
94 | CHAMPIGNY-SUR-MARNE | 4 529 | 4 752 | 5 342 | 3,6% |
94 | CRETEIL | 4 620 | 4 743 | 4 982 | ND |
94 | FONTENAY-SOUS-BOIS | 5 889 | 6 734 | 6 968 | 5,3% |
94 | IVRY-SUR-SEINE | 5 239 | 5 352 | 5 371 | 5,8% |
94 | ST MAUR DES FOSSES | 7 028 | 7 436 | 7 673 | 5,4% |
94 | VILLEJUIF | 6 111 | 6 496 | 6 893 | 3,0% |
95 | ARGENTEUIL | 4 440 | 4 561 | 4 905 | 5,5% |
95 | CERGY | 4 161 | 4 203 | 4 256 | ND |
Source: Real Estate Lab
Evolution of new housing prices in major cities
Communes | Low price (€/m²) | Average price (€/m²) | High price (€/m²) | Evolution over 12 months |
PARIS | 11 642 € | 12 498 | 13 665 € | 3,4% |
LYON | 5 651 € | 6 386 | 7 374 € | 6,5% |
NICE | 4 961 € | 6 098 | 6 402 € | 6,9% |
NANTES | 4 811 € | 5 129 | 5 744 € | 7,7% |
MONTPELLIER | 4 892 € | 5 085 | 5 474 € | 4,9% |
RENNES | 4 747 € | 5 055 | 5 256 € | 9,7% |
BORDEAUX | 4 542 € | 4 929 | 5 161 € | 1,8% |
MARSEILLE | 4 105 € | 4 890 | 5 546 € | 5,4% |
STRASBOURG | 3 859 € | 4 738 | 4 976 € | 5,8% |
TOULON | 4 422 € | 4 695 | 5 112 € | 6,5% |
TOULOUSE | 3 881 € | 4 603 | 4 881 € | 8,4% |
GRENOBLE | 3 757 € | 4 241 | 4 523 € | 8,1% |
LITTLE | 3 766 € | 4 203 | 4 304 € | 7,9% |
REIMS | 3 663 € | 3 988 | 4 309 € | 7,2% |
LE HAVRE | 3 293 € | 3 523 | 3 612 € | 0,2% |
Source: Real Estate Lab
Evolution of new home prices in other major cities
Sandal. | Communes | Low price / m² | Average price m² | High price / m² | Evolution over 12 months |
6 | ANTIBES | 6 339 | 6 500 | 7 634 | 5,5% |
6 | CAGNES SUR MER | 5 440 | 5 675 | 6 517 | ND |
6 | CANNES | 4 727 | 4 956 | 5 175 | ND |
6 | NICE | 4 961 | 6 102 | 6 425 | 7,0% |
13 | AIX EN PROVENCE | 5 339 | 5 515 | 6 599 | 7,4% |
13 | ARLES | 3 682 | 3 737 | 3 822 | ND |
13 | MARSEILLE 03 | 4 036 | 4 417 | 4 451 | ND |
13 | MARSEILLE 04 | 4 669 | 4 788 | 4 857 | ND |
13 | MARSEILLE 08 | 6 043 | 6 145 | 6 416 | 5,1% |
13 | MARSEILLE 09 | 4 771 | 4 947 | 5 526 | 7,1% |
13 | MARSEILLE 10 | 4 140 | 4 279 | 4 593 | 7,9% |
13 | MARSEILLE 11 | 4 425 | 4 795 | 4 936 | 8,6% |
13 | MARSEILLE 12 | 3 728 | 4 379 | 5 014 | 8,5% |
13 | MARSEILLE 13 | 4 032 | 4 196 | 4 565 | 7,9% |
13 | MARSEILLE 14 | 3 533 | 3 717 | 3 998 | ND |
13 | MARSEILLE 15 | 3 390 | 3 665 | 4 101 | ND |
13 | MARTIGUES | 4 434 | 4 621 | 4 962 | 7,3% |
14 | CAEN | 3 752 | 4 086 | 4 619 | 8,5% |
17 | LA ROCHELLE | 4 443 | 4 715 | 5 134 | 2,8% |
21 | DIJON | 3 870 | 3 986 | 4 190 | 3,4% |
25 | BESANCON | 3 614 | 3 700 | 3 772 | 4,3% |
29 | BREST | 3 501 | 3 789 | 4 698 | ND |
30 | NIMES | 3 700 | 3 926 | 4 276 | 6,5% |
31 | TOULOUSE | 3 881 | 4 603 | 4 881 | 8,4% |
33 | BORDEAUX | 4 542 | 5 055 | 5 161 | 4,4% |
33 | MERIGNAC | 4 452 | 4 703 | 4 789 | 2,3% |
33 | PESSAC | 4 615 | 4 747 | 4 956 | 6,2% |
34 | MONTPELLIER | 4 892 | 5 169 | 5 474 | 6,6% |
35 | RENNES | 4 747 | 4 890 | 5 256 | 6,1% |
35 | ST MALO | 4 445 | 4 651 | 5 023 | 4,8% |
37 | TOURS | 3 674 | 3 855 | 4 006 | 6,9% |
38 | GRENOBLE | 3 757 | 4 193 | 4 523 | 6,8% |
42 | ST ETIENNE | 3 142 | 3 518 | 3 622 | ND |
44 | NANTES | 4 811 | 5 085 | 5 848 | 6,8% |
44 | ST HERBLAIN | 4 366 | 4 461 | 4 709 | 6,2% |
44 | ST NAZAIRE | 3 658 | 3 842 | 4 230 | 6,6% |
45 | ORLEANS | 4 140 | 4 290 | 4 487 | 7,6% |
49 | ANGERS | 3 707 | 3 870 | 4 244 | 6,2% |
49 | CHOLET | 3 980 | 4 328 | 4 862 | ND |
50 | CHERBOURG IN COTENTIN | 3 101 | 3 191 | 3 281 | ND |
51 | REIMS | 3 663 | 3 988 | 4 309 | 4,9% |
53 | LAVAL | 3 151 | 3 236 | 3 308 | ND |
54 | NANCY | 3 662 | 3 972 | 4 088 | 6,9% |
56 | LORIENT | 3 881 | 4 011 | 4 254 | ND |
56 | VANNES | 3 781 | 3 963 | 4 946 | 4,0% |
57 | METZ | 3 696 | 3 763 | 3 833 | 5,0% |
59 | DUNKERQUE | 2 980 | 3 276 | 3 566 | ND |
59 | LITTLE | 3 766 | 4 203 | 4 304 | 7,9% |
59 | ROUBAIX | 3 565 | 3 726 | 4 152 | 7,3% |
59 | TOURCOING | 3 125 | 3 356 | 3 397 | 2,7% |
59 | VILLENEUVE D’ASCQ | 3 860 | 4 517 | 4 498 | ND |
63 | CLERMONT-FERRAND | 3 563 | 3 899 | 4 315 | 1,5% |
64 | BAYONNE | 4 149 | 5 013 | 5 771 | 4,5% |
64 | PAU | 4 485 | 4 527 | 4 560 | ND |
66 | PERPIGNAN | 3 259 | 3 458 | 3 598 | 2,1% |
67 | STRASBOURG | 3 859 | 4 738 | 4 976 | 4,2% |
68 | COLMAR | 3 841 | 4 277 | 4 526 | ND |
68 | MULHOUSE | 3 149 | 3 496 | 3 994 | ND |
69 | LYON 03 | 6 651 | 6 935 | 7 520 | 11,7% |
69 | LYON 04 | 7 691 | 7 977 | 8 163 | ND |
69 | LYON 05 | 6 314 | 6 716 | 7 375 | 5,9% |
69 | LYON 07 | 5 745 | 5 998 | 6 263 | 6,4% |
69 | LYON 08 | 5 493 | 5 856 | 6 164 | 7,4% |
69 | LYON 09 | 5 252 | 5 669 | 6 222 | 6,4% |
69 | ST PRIEST | 3 734 | 3 910 | 4 753 | 9,2% |
69 | VAULX IN VELLUM | 3 782 | 3 957 | 4 061 | 4,8% |
69 | VENISSIEUX | 4 026 | 4 215 | 4 618 | 5,4% |
69 | VILLEURBANNE | 5 266 | 5 679 | 6 102 | 8,8% |
74 | ANNECY | 6 237 | 6 895 | 7 153 | 6,4% |
76 | LE HAVRE | 3 293 | 3 523 | 3 612 | 0,2% |
76 | ROUEN | 3 317 | 3 627 | 3 896 | 2,4% |
80 | AMIENS | 3 502 | 3 713 | 3 840 | 0,4% |
83 | FREJUS | 4 442 | 4 693 | 5 069 | ND |
83 | HYERES | 5 082 | 5 242 | 5 411 | 6,7% |
83 | THE SEYNE-SUR-MER | 3 973 | 4 534 | 4 849 | 8,8% |
83 | TOULON | 4 712 | 4 775 | 5 213 | 8,3% |
84 | AVIGNON | 3 511 | 3 730 | 3 940 | ND |
87 | LIMOGES | 3 513 | 3 551 | 3 613 | 7,5% |
Source: Real Estate Lab
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