Real estate prices in France are no longer regulated, they are decreasing.

According to notaries, prices for old real estate in France decreased by4% by the end of2023. This turnover is occurring with some time lag due to a decrease in transaction volume..

From 2021 to 2023, the number of transactions fell by 26% across France, from 1.2 million to 870,000 sales. "The solidity of household budgets no longer allows first-time homebuyers to become purchasers, and the wait is now very significant," emphasizes Elodie Fremont, spokesperson for the Chamber of Notaries of Greater Paris.

The sharp and rapid rise in interest rates has made access to loans for households much more difficult, especially considering the significant caution from banks. While a decline in real estate prices has become a common phenomenon, its intensity varies across different regions. In Paris, the price drop is more severe: the price per square meter in the fourth quarter of 2023 is 9,770 euros, which is 7% lower than a year ago.

According to the data presented, the price per square meter in Paris is expected to drop to €9,410 in April, which represents an 8% decrease compared to the previous year, and even a 13% decline from the peak reached in 2020. "The price in current euros will be reduced to the level of summer 2018," note Notaires du Grand Paris.

At the end of 2023, not only are all Parisian districts experiencing an annual decline in prices, but for thirteen of them, the drop has been significant (over 5%). The steepest declines are observed in the cheapest areas in the east of the capital, such as the 13th (-12%) and 19th (-9) districts, where the price per square meter falls below 8,000 euros. Prices are decreasing less sharply in the city center and prestigious areas (-3% in central Paris and the 8th arrondissement), "especially thanks to foreign buyers who have high purchasing power and can do without a mortgage," claims Olivier Clermont, a notary in Paris.

"The areas that were most affected are typically those that experienced the fastest decline in prices during the financial crisis of 2008," notes notary Thierry Delesal.

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