Five key factors driving down real estate prices in France.

The real estate market in France continues to decline, with falling prices expected for at least another six months. New figures from official sources confirm that the average property price in the country has fallen by 3% compared to last year. Sellers are advised to prepare for bidding and be prepared to reduce the price if they need to sell their property.

The price drop is primarily affecting major cities, especially Paris, while rural areas are feeling it to a lesser extent. Price declines are greatest in areas where prices have grown most intensively in recent years, and less marked in areas with more moderate price increases.

The main reason for the decline in prices is''is an increase in mortgage rates from less than 2% in 2022 to more than 4%. The rates are dependent on the Central European Bank, which aims to reduce inflation by raising key interest rates to 4%.

The fall in prices will continue over the next six months as sales prices continue to fall short of people's purchasing power, experts said.

Where people have the ability to buy, however, they are negotiating down the price. Sellers who need to sell their properties should listen to market signals and be prepared to reduce''prices.

It is worth noting that the decline in real estate prices is not uniform across the country. In Paris, real estate prices fell by 6.1% by November, but the situation is different in other cities. For example, in Lille, Marseille and Rouen apartment prices remained virtually unchanged, while in Besançon, Nantes, Angers and Rouen they fell by 8% or more.

Experts also point to five factors affecting price reductions: property type, location, condition and diagnostic assessment, lack of new construction and the refusal of some sellers to lower prices.

Despite the decline in prices, it is believed that buying real estate is still a safe and long-term investment, and it is important not to make quick transactions on''buying and selling real estate.