France: the country's real estate industry is experiencing rapid growth

The general downturn in prices already noticed by agencies is not expected to last long. "Without a doubt, the downturn will accelerate," believes Thomas Lefebvre, research director of Meilleurs Agents. Interest rates have, in fact, accelerated their rise since the first quarter, when the government eased credit conditions.

"The crazy years have come to an end": seven years of uninterrupted growth in old properties in France are coming to an end, with a 0.5% rise in prices in the second quarter, likely foreshadowing a downturn. The Notaires-Insee index published on Thursday, which is considered a comprehensive source of information, indicates that prices in France (excluding Mayotte) rose 0.5% year-on-year. This is a clear slowdown since mid-2022. From 6.8% in the second''help from parents in the form of donations'." Inflation, which reduces the rest of the life of families, also reduces prices, especially for houses, said Elodie Fremont. "When you have a house, you need a car, so it affects the price of gasoline, the energy consumption and the sale of compliant energy standards, which now, in case of low valuation, require repairs and energy audiences. "

Sellers are energized.

If buyers are stressed, sellers are also stressed.

As prices fall, those who can afford it take their property off the market, and "whoever finds himself around our table finds himself in a financial situation that forces him to sell, or in a personal situation where''he has no choice: divorce, separation or inheritance,' noted Elodie Fremont.

As a result, the number of transactions, which is an indicator of market activity and reached an absolute record (more than 1.2 million) in 2021, continues to decline rapidly. For the whole of France, excluding Mayotte, the number was 1 million, which is still above the historical average, notes Insee.

The decline is ahead.

The general decline in prices, already seen by agencies, is not far behind. "Without a doubt, the downturn will accelerate," believes Thomas Lefebvre, research director of Meilleurs Agents. Interest rates have, in fact, accelerated their rise since the first quarter, when the state eased the conditions for obtaining credit. "With the purchase becoming''everything is less and less favorable from a financial point of view because you have to wait longer and longer for the purchase to be profitable,' Thomas Lefebvre also observes. Guillaume Martenot, president of the Orpi network of agencies, also points to housing policies, considering that the conditions for access to credit are still too restrictive. There are several measures that could discourage real estate investment, he believes, such as the increase in property taxes in many cities, the end of state aid or renovation requirements. "All of these are not conducive to increasing supply in the real estate market," he notes.