Real estate crisis in France: price decrease is spreading to other cities after Paris.

The significant drop in housing prices is being seen in the French market. This crisis began in Paris (-4.5% over the year to a level of9,944 euros per square meter) and has subsequently spread across the country, particularly in the most expensive regions. To assess the extent of this shock in terms of the number of properties offered and prices, French colleagues from the newspaper Les Échos conducted an investigation into the sharp decline in real estate prices. And the results are not comforting.

Let's start with Lyon

Real estate prices have fallen by 8.1% over the year, reaching an average level of 5,026 euros per square meter.

In Bordeaux

There is a decrease of 8.6%, of which 1% occurred in just one month. This reduction can be explained in the case of these two cities. Over the past ten years, real estate prices have risen by more than 40%. Such a drop seems more like a return to normal with more moderate rates compared to the incomes and purchasing power of residents.

Unlike them

Only Nice and Marseille are experiencing a relative increase. The latter city has adjusted 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 significant at 7.9% over the year, with an average price of 5,292 euros per square meter.

Shopping across the border: prices in France are on average 30% lower.

Stability or growth in rural areas

While there is a sharp decline in prices in large cities overall, the situation in rural areas seems less problematic. During the summer month, the average price per square meter remained stable at 3,179 euros. In rural areas, where the assessment is based on the value of homes rather than sales, the index continues to rise - by 3% over the year.

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