At the moment, the real estate sector is experiencing some declines. In the old, it is the sales that begin a return to calm. At the same time, the purchasing power of the French is falling slightly in the 20 largest cities in France.
Old real estate: a “soft landing” for 2018
Over the past two years, a record number of transactions was registered in the old real estate. But 2018 should mean a return to calm with, according to notaries, “more reasonable” sales volumes.
As of February, there were 965,000 sales in the last 12 months, 5,000 fewer than a year earlier. However, even in decline, the number of transactions remains very large. But then why are they saying that Is the market going to stabilize? Not least because credit applications are down in more than 40banks.
On the price side, we can expect stagnation or even an increase. In 2017, they increased by an average of 4. Apartment prices rose more than house prices. In Ile-de-France, for example, prices of older apartments increased by 5.1 over one year and an increase of 8.6 was even observed in Paris. In the province, the increase is less significant, but still present: 2.7 in the last quarter of 2017. Some major cities have experienced a real explosion in prices: in Bordeaux, the square metre has increased by 16 in one year. In Nantes, Lyon, Lille, Annecy and Toulouse, the increase is between 5 and 8 .
Slight drop in purchasing power in major French cities
In medium-sized cities, the purchasing power of Français.es increased between March and April. At the same time, it has declined in major cities. This purchasing power, calculated for 1,000 euros of monthly payments over 20 years with fixed-rate borrowing, is thus declining in various major cities.
Saint-Étienne (which still retains its first place) has lost nearly 10 square meters of real estate purchasing power, from 163 square meters to 153 square meters of financial area. Paris is last in the ranking just after Lyon and Bordeaux, the latter having lost six square meters of real estate purchasing power in one year. If the reason for this decline in purchasing power in the big cities is not to be sought on the side of rates still stable, it is on the other hand to look on the side of prices that have changed.
However, some major cities are doing well: Toulon has gained four square metres of financial space, Angers has gained six square metres and Le Havre is two square metres.
Here is a summary table for the 20 largest French cities (period: March-April 2018):