The real estate crisis in France: prices in major cities are falling after Paris.

France has faced a serious decline in the real estate market. This crisis began in Paris (-4.5% per square meter per year, down to €9,944) and gradually spread across the country, especially in the most expensive regions. To assess this shock in the number of properties available and their prices, our French colleagues from the newspaper Les Échos conducted a study on the drastic drop in real estate prices. The results are unequivocal.

Let's start with Lyon

where prices have fallen by 8.1% over the year, reaching an average price of 5,026 euros per square meter. In Bordeaux, we also see a decrease of 8.6%, including 1% in just one month. This decline can be explained in the case of these two cities. Over the past ten years, property values have increased by more than 40%. So this decrease can be considered a return to normal, with more moderate rates compared to the average income and purchasing power of residents.

Unlike them

Only Nice and Marseille are experiencing a relatively significant increase. Marseille raised its prices by 2.2% over the year, with an average price of 3,871 euros per square meter. In Nice, the increase is more substantial - 7.9% over the year, with an average price per square meter of 5,292 euros.

Foreign purchases: prices in France are on average 30% lower.

Stability and even growth in rural areas

While there is a significant decrease in prices in large cities overall, this is less characteristic of other areas. During the summer month, the average price per square meter remained stable at 3,179 euros. In rural areas, where the index was calculated based on the value of homes rather than sales, the value continues to rise, with a 3% increase over the year.

However, Les Échos notes that this growth has halved compared to last year, indicating a general slowdown in the economy of the country. Overall, prices have decreased by 0.4% over the year. It is worth mentioning that this is the first time prices have fallen across France in the last seven years.

To access the article, please connect to the internet.