New housing: unexpected opportunities for buyers

The fall of 2023 promises good news for buyers of new residential properties in France. As the specialized portal points outTrouver-un-logement-neuf.com., a new home expert, new home prices have finally declined over the past six months. This trend offers a valuable opportunity. Now you can realize your real estate projects and build equity in real estate, which is a symbol of timeless value.

The rundown:

• Fall 2023 new home price decline in France in the fall of 2023.
• A favorable trend for new real estate in France.
• New housing: price reductions in several cities.
• Paris: a symbol of the decline in new housing prices.
• L'Alpe d'Ouez: a new entrant among the most expensive cities.
• The most affordable cities to buy a new home.
• New opportunities in the new housing market in France.

Decline in new housing prices in France in the fall of 2023. Growth in the supply of new housing. The supply of new housing is experiencing a marked recovery. In 2021, 141 cities offered at least five new housing programs in France. One year later, this figure had fallen to 127. However, a recovery in supply is seen in the fall of 2023, with 158 cities now offering at least 5 new programs nationwide. According to theTrouver-un-logement-neuf.com.. This supply recovery indicates a positive trend after a period of prolonged supply contraction since 2018.

Reasons for the supply recovery. Several factors explain the recovery in new home supply. In fact, sales declined by -37% in the first half of 2023, according to the Federation of Property Developers (FPI). At the same time, a nearly 30% year-over-year decline in supply failed to offset this drop in bookings. This has mechanically contributed to a rebound in inventory.

Strategies of construction companies. Although finished stock remains limited, construction companies are employing bold commercial strategies. They seek to achieve the necessary level of pre-commercialization to launch work or sell their current products. This strategy is driving prices down in 98 of the 158 cities studied over the past six months. Compared to a year ago, three-bedroom home prices were up in 4 out of 5 cities. In October 2023, 60 communities, representing 2 out of 5 cities, saw price increases. This highlights the volatility of this trend in the French new real estate market.

The current dynamics of the new housing market in France offer significant opportunities for potential buyers. They can take advantage of this period to realize their real estate projects in an environment of more competitive prices and diverse supply.

A favorable trend for new real estate in France.

Although consumer prices rose 4.9% year-over-year by the end of September, according to the National Institute of Statistics and Economic Research (Insee), the new housing market is showing an unexpected trend. In fact, the average price of a three-bedroom home has declined -1.42% over the past six months. In the fall of 2023, on average, you need to pay 322676 euros to buy a three-bedroom new home in France. This reduction saves around €4,650 compared to six months ago.

Celine Coletto, of Trouver-un-logement-neuf.com, notes the exceptional decline in new home prices in France. This decline is occurring in the face of ongoing inflation and represents a rare opportunity for buyers. The combination of high inflation and declining real estate prices provides unexpected benefits for real estate investors.

New home price declines in several cities.

Declining prices in the new housing sector are creating opportunities. Especially for flexible real estate investors by location. Cities such as Nice, Grenoble and Lille stand out. Nice, for example, has seen a significant price drop of -13% and the average price for a three-bedroom home is now €387,100. Grenoble and Lille also offer interesting opportunities for buyers.

Opportunities on a national level.

Trends in major cities. Even in large cities, prices are declining. In Lormont, in the Bordeaux metropolis, the decrease is -10% and in Mérignac -8%. Near Strasbourg, in Chiltigheim, there is also a significant price decline of -9%. These trends demonstrate the geographical diversity of new home price declines in France and offer investment opportunities in different regions of the country.

Paris: a symbol of the decline in new housing prices.

If one city epitomizes the trend of falling prices in France, it is certainly Paris! In just six months, real estate prices in Paris for new homes have fallen by almost -6%. This equates to a saving of €51500 for a three bedroom new build. Currently, on average, you need to pay 821200 euros for a two-bedroom apartment in the capital.

Price increases in some cities. However, it is important to note that approximately sixty cities also show price increases. Saint-Laurent-du-Var, located in the Alpes-Maritimes department, shows the highest growth in this ranking with an increase of +15%. The average price for a three-bedroom home is now €385,200. Also Dunkirk and Annecy follow nearby with respective increases of +13% and +12% over the last six months.

Impact of zoning changes. It is also interesting to consider a recent zoning change in the 210 towns that include Dunkirk and Annecy. Dunkirk was upgraded to a B1 zone and Annecy was upgraded to an A zone. This change may increase their attractiveness and thus put additional pressure on new home prices.

The variety of price changes in different regions of France reflects the complexity and variability of the new housing market. It also offers buyers and investors different opportunities depending on their preferred location.

L'Alpe d'Ouez: a new entrant among the most expensive cities.

Traditionally, the most expensive cities for new housing in France are in the Hauts-de-Seine department, near Paris. However, in the fall of 2023, an unexpected phenomenon is taking place. After the town of Saint-Saint-Denis in 2022, another new development appears: a ski resort.

Indeed, L'Alpe d'Ouez ranks second in the top 5 most expensive towns. This ski resort in Isère is notable for offering more than five new programs. While affordable land is becoming increasingly rare in ski resorts.

Finally, the three towns of Hauts-de-Seine, Issy-les-Moulineaux and Puteaux, round out this ranking.

The most affordable cities to buy in new housing.

In contrast, the top 5 most affordable cities to buy a new home presents a very different reality. The city of Lons, located in the Pyrenees-Atlantique department near Pau, ranks first with an average price of around 182,000 euros for a two-bedroom apartment. Dax, in the Landa department, ranks second with an average price below 200000 euros for a two-bedroom apartment. Also Colombel, in Calvados, in the metropolitan area of Cana, ranks third.

The biggest price changes for new housing in France over six months. Finally, the Top 5 cheapest cities for new housing include Valenciennes and Beziers, with the average price for a two-bedroom apartment below 210000 euros. This variety of prices by location demonstrates the great diversity of the new housing market in France.

New opportunities in the new housing market in France.

Fall 2023 is a turning point in the new housing market in France, marked by price reductions that offer new prospects for buyers. This change is due to several factors, including a decline in new home sales and a reduction in supply. This situation is leading to a recovery in supply in many cities across the country. It is also accompanied by attractive commercial offers offered by construction companies.

This price reduction, even in the presence of continuing inflation and rising construction costs, represents a rare opportunity to