Real estate prices in France: the rise continues

On Wednesday, June 1, 2022, data was presented regarding changes in housing prices in France over the past three months. What are the annual trends in the real estate market, both for Île-de-France and for the provinces? Notaries and the National Institute of Statistics and Economic Studies (Insee) released key data on this issue on May 31.

Analysis of changes in housing prices

The analysis of changes in housing prices in the old stock confirms that the growth continues, although not as actively as before. During the first three months of 2022, housing prices in France (excluding Mayotte) increased by1.5%compared to the fourth quarter of 2021, according to seasonally adjusted provisional data. In previous quarters, the increase was1.6%and2.1%Over the year, as of the end of March 2022, housing prices have increased by7.3%, after the indicators in7.1%and7.5%In previous years, since the end of 2020, there has been a more noticeable increase in home prices.9.2%in the first quarter of 2022) compared to apartments (4.7%).

Île-de-France

Île-de-France shows a particular interest in homes. In the first quarter of 2022, housing prices in this region increased again by0.7%compared to the fourth quarter of 2021, after a decline of0.1%and growth in1.4%in previous periods.

Prices for apartments in Paris

At the same time, apartment prices in Paris continue to slightly decline, having dropped by0.6%from the fourth quarter of 2021 to the first quarter of 2022. This decline is also confirmed by the annual dynamics, where a year-on-year comparison shows a drop in apartment prices in the capital by1.2%.

The situation in the provinces

At the provincial level, there is an upward trend. In the first quarter of 2022, prices for old housing increased by1.8%what's in the background2.3%growth in the fourth quarter of 2021 and2.4%In the third quarter, it looks quite confident. Year-on-year, there is an even more pronounced growth.9.3%Compared to the same period last year, capturing the trend of the last two quarters with the indicators9.0%and8.9%.

General trends and transaction volume

Since the beginning of 2021, the rise in home prices in the province10.0%a year before the first quarter of 2022) the rise in apartment prices was surpassed7.8%This change in dynamics was not observed in 2019 and 2020. It is also worth noting that the volume of transactions is starting to stabilize: in March 2022, the total number of transactions over the past 12 months was approximately1.175 million, which is slightly lower compared to1.177 millionat the end of December 2021. The ratio of completed transactions to the availability of offers in the real estate market, which has been increasing by approximately in recent years.1%per year, indicates that the sales level since 2019 has exceeded the figures from the early 2000s.