Real estate prices have fallen by 5% in Paris in one year
The market real estate will it collapse? The question is on the lips of many households. For the moment, it’s time to drop prices but a moderate decline. confirm with the latest study of Best Agents: prices have fallen by 5% in Paris over the past 12 months. Unheard of since the 2008 financial crisis! At that time, prices had plummeted by 7% in the capital between July 2008 and April 2009. The bar of 10,000 euros per m² is gradually approaching: an apartment in the capital sells for 10,082 euros per m², on average, according to Top Agents. Seven boroughs under passed under 10,000 euros per m² (see below). And suddenly, the activity reached a record in 2022: more than 41,000 properties changed hands, according to notaries. But since the beginning of the year, the atmosphere is more gloomy in the capital. “To maintain the same purchasing power of a year ago, prices would have to fall by 20%“, deciphers Thomas Lefebvre, scientific director of Meilleurs Agents.
Like Paris, prices are also falling in major cities. In April alone, prices fell by 1% in Bordeaux and by 0.7% in Lyon and Montpellier. Rural areas are also less festive, even if there is no question of falling prices yet. The surge in prices of recent years (+11% in 2021 and +6% in 2022) has already melted and given way to virtual stability (+0.6% since the start of the year). “More restricted access to credit affects sales volumes and therefore demand», Analyzes Thomas Lefebvre. Buyers have regained control and sellers are often forced to negotiate lower prices if they want to sell their homes successfully. And it shows in the negotiations. “A couple of buyers visited our apartment 5 times before deciding to make an offer. We agreed to a 4% reduction but the offer satisfies us and we will probably not have such a high offer.says Marion, whose Parisian apartment had been on sale for almost a year and a half.
The discount is around 5% on average in France, according to Laforêt. Meilleurs Agents evaluates it rather between 3 and 4%. “Negotiation concerns nearly two-thirds of transactionssays Thomas Lefebvre. One in two homes sold at the price in 2020. Today, only one in three“. Why this inverted balance of power? Blame it on the double news of the market: financial – the purchasing power of buyers has fallen – and ecological – an energy-intensive home (F or G on the Energy Performance Diagnosis, DPE) is now less well sold than a well-insulated home (A), with identical profile. “The criteria that take precedence, for the DPE, are the floor, whether the apartment is in gable or not, the heating system and the windows“, explains Alexa Sadone, real estate agent in Neuilly-sur-Seine.
These price reductions are enough to make buyers smile a little. But not completely, because these falls are still too small to offset the surge in credit rates and thus allow households to once again have access to property. “For the moment, the volume of sales in France has fallen by 15% over one year, based on the promises of sales that our partner agencies have informed uses”, emphasizes Thomas Lefebvre. The bar of one million transactions will not be exceeded, if this decline is confirmed or increases. A first for 5 years!
