According to INFO EUROPE 1, house prices in France rose by 7.2% in 2022.

Inflation and the crisis of purchasing power are seriously affecting the daily lives of the French. And in housing, this burden has intensified in 2022. According to a report conducted on Thursday by the real estateagency Guy Okay, real estate prices have increased in 2022. There is an increase of 7.2% in prices for January-September in the old stock.

Rising house prices

In detail, it's house prices pushing the figures up, + 10.9% per m2 compared to +4% for apartments. "This trend was the same last year, it's the Covid-19 effect," explains Stefan Fritz, CEO of Guy Okay on Europe 1 airwaves. "Buyers' needs have changed. People want one extra room, kids to work from a distance, a bit of a garden, a balcony..."

Real estate shortage in the ABM region

"Shortage" of real estate in the ABM region, where are these growths strongest? The Southern region and the Western Façade are proving particularly attractive, so much so that there is a shortage of properties (including houses) in many cities such as Montpellier, Nîmes, Nice, Perpignan, Toulon, Montauban. In contrast, major metropolitan areas such as Paris, Lyon and Lille have stabilized. The exception is Marseille, which has attracted many buyers because of its affordability, quality of life and the city's redevelopment: price growth in the market exceeds the national average, +8.5% per m2! "There is a real estate shortage in the Provence-Alpes-Côte d'Azur region, in the South East," explains Stephan Fritz.

Ile-de-France Market

And what about the market of Ile-de-France, the most populated region of France? The Guy Okay real estateagency network is seeing a very serious increase in the number of homes for sale in Ile-de-France, especially in the 2nd ring (+21% by volume). The problem of energy renovation.

On average, in the whole country, 8% of proposed older properties are "energy holes": this is +1 point compared to 2021. Minimal increase. The properties classified as F and G offered for sale are most characteristic of the cities of Dijon, Annecy, Limoges, Clermont-Ferrand, Saint-Etienne, Grenoble and Rouen. In Ile-de-France, the figures are worrying, with +28% of properties classified as F and G offered for sale between January and September 2022. The total share of such properties in the Parisian market is 11%.

The problem of energy reconstruction

"It's a really serious problem here because rents are much higher and the ban on Class G properties will affect owners," says Stefan Fritz. "The cost of work here is much higher than in the province, so it has a significant impact." Start an energy retrofit or sell? Many owners have made the choice to part with their property. "There's a hierarchy in classes," continues the CEO of Guy Okay. "Classes A to C sell on average in France between 3,200 and 3,700 euros per average meter, while classes F and G sell for 2,500 euros/m2." How much will it cost to move from one energy class to another? "On average they talk about 17,000 euros per 50 m2", says Stefan Fritz, while expressing some doubts. And concludes: "The market turnover will probably remain the same, but we know that the market will move. The coming months will be a bit more challenging, especially with the impact on rentals."