Immobilia Ile-de-France: declining sales and falling prices

limited by financial constraints for buyers, due to rising interest rates, which reduces their ability to pay and limits access to credit.

There were 11,700 fewer older dwellings sold in Ile-de-France in 3 months compared to the same period last year, with the decline becoming more severe over time. A comparison with the first half of 2022, which was exceptionally active, still reinforces the decline. This figure is still quite realistic, even when long-term averages are taken into account.

From March through May 2023, older residential sales volumes declined 7% from the 10-year average. The decline for apartments was 4% and for houses 15%.' 'slightly exceeding the symbolic threshold of €10,000. It stands at €10,170 in May 2023, resulting in a 3.5% annualized decrease. According to prices from preliminary contracts, the price of apartments should reach €10,070 per square meter in September 2023 in the capital, which would increase the annual price decline to 5.5%, although prices usually stabilize from July to September.

Other market segments also expect more moderate price changes in the coming months.

Prices typically rise in the summer when sales are recorded, allowing for a change of homes before the school year begins. In the current environment of declining trends, this traditional summer phase becomes the price consolidation seen in most Ile-de-France markets.