The real estate crisis: prices in France are sharply declining.

Published on 06/09/2023 21:19
Updated 06/09/2023 22:40
Video duration: 2 minutes

The real estate market crisis: in France, apartment purchase prices are rapidly falling.

Real estate market crisis: in France, apartment purchase prices are rapidly falling - (France 2) Sternashny report France 2 - K. Ruzheri, O. Marten, L. Lemouanyi, J.-P. Rivalen, S. Alphonse France Television

Prices for real estate purchases are falling across France. The reason is the explosive growth in interest rates on loans, which professionals believe will last for at least a few months. Houses are being sold, and prices are dropping.

In Shell (Seine-et-Marne), Florence Bugot sold her family house, which is 60 square meters with a small garden.

Sale flat in Saint-Denis 373 625 $

France,Saint-Denis

3 Bedrooms

2 Bathrooms

109 м²

Sale flat in Saint-Aubin-les-Elbeuf with city view 85 847 $

France,Saint-Aubin-les-Elbeuf

2 Bedrooms

1 Bathroom

68 м²

Sale flat in Corbey-Eson with city view 156 577 $

France,Corbey-Eson

1 Bedroom

1 Bathroom

46.50 м²

Sale flat in Saint-Denis 210 569 $

France,Saint-Denis

2 Bedrooms

1 Bathroom

48 м²

Sale flat in Rowan 190 268 $

France,Rowan

2 Bedrooms

1 Bathroom

61 м²

Sale flat in Nice with sea view 561 518 $

France,Nice

2 Bedrooms

71 м²

The initial price was set at 336,000 euros. However, after a dozen unsuccessful viewings, she had to lower the price and found a buyer only for 300,000 euros, which means a decrease of 11%. When asked about the loss of 36,000 euros, the homeowner said: "If we don't sell it in the summer, and nothing changes in the winter... The house is important, it needs to be maintained, so I realized that I had to seize the opportunity."

The drop in prices is explained by a surge in interest rates on loans, according to the director of the real estate agency that made the sale. "Over the year, buyers have lost an average of at least 10% of their purchasing power for housing, along with the requirement to have a 10% down payment," explains Paul Gintermeier, director of the Guy Hoquet agency in Schelle.

In France, prices are falling everywhere. No region has been left out. According to professionals, the situation will last for at least a few months.