The real estate market crisis: property prices in Strasbourg are falling, but rental rates remain stable.

One of the consequences of the 4% interest rate is that both the residents of Strasbourg and the French in general are borrowing and buying less. As a result, prices are falling. According to local data from the National Federation of Real Estate, the selling price in Strasbourg has decreased by more than 3% over the year. This decline should be viewed in light of the fact that the average price per square meter in the capital of Alsace is 32% higher than in the rest of the region, standing at around 3900 euros. Therefore, the properties offered for sale are still too expensive. Too expensive for the majority of the population, who, with the current interest rates, are no longer able to become property owners or even think about it. "I am a single mother, and I earn just above the minimum wage; my loan application wouldn't even be considered," says Axel, whom I met in the Krutenau area. She pays 895 euros a month for a three-room apartment.

Rental payments

However, they are not decreasing in Strasbourg; on the contrary, they are rising. According to data from FNAIM, they have increased by almost 1% over the year. The biggest growth has been seen in small housing, for example, prices for one-bedroom apartments have risen by 2% compared to last year. And this is not even taking into account utility payments. Many families have turned to social housing, which is causing concern for the Confederation of Families in Bas-Rhin.

“Housing is the largest expense in a family budget,” explains Grégoire Balast, who is responsible for housing issues in the confederation. “We are indeed seeing that the price for renting a square meter in the private sector is overvalued, which means that families who could previously afford to rent in the private sector can no longer do so today. An increasing number of middle-class families are turning to social housing, which creates a problem of overcrowding,” concludes Grégoire Balast.

Therefore, the confederation insists on increasing housing subsidies, but "this is not relevant," said Housing Minister Patrice Vergriete on Monday, who prefers to "increase the housing supply."