Real estate price growth in France was 7.2% in 2022.

Property prices in France are set to rise by 7.2% in 2022, according to a barometer compiled by Guy Hoquet and published by station Europe 1. Demand is particularly strong in the house market, with a moderate increase in apartment prices, while buyers are increasingly attracted to the west and south of France, leading to a shortage of supply.

Inflation and purchasing power crisis

have an impact on the lives of the French. In the field of housing, this burden has increased in 2022. According to the real estate barometer compiled by Guy Hoquet, real estate prices have increased in 2022. There is an increase in prices of 7.2% per square meter of living space in the old stock from January to September.

In detail, it is the prices of houses that are pulling the figures up, with an increase of 10.9% per square meter, compared to 4% for apartments. "This trend was the same last year, it's the Covid-19 effect," explains Guy Hoquet's managing director, Stéphane Fritz, on Europe 1. "Buyers' needs have changed. People want another room for each child to work remotely, a bit of a garden, a balcony..."

"Deficit" of housing in the Provence-Alpes-Côte d'Azur region

In which French regions are the price increases most noticeable? The southern region and the west coast in particular are very attractive, so much so that we are seeing a shortage of supply (especially houses) in many cities such as Montpellier, Nîmes, Nice, Perpignan, Toulon, Montauban.

In contrast, large 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 urban redevelopment: market price growth here is above the national average at +8.5% per square meter! "In Provence-Alpes-Côte d'Azur, in the south-east, there is a real shortage of supply", explains Stephan Fritz.

Situation on the French real estate market

What is the situation on the French real estate market, the most populated region of France? Real estateagency Guy Hoquet has seen a very high growth in the number of placements in the Ile-de-France region, especially in the second arrondissement (+21% in volume).

The challenge of energy renovation

Nationally, on average, 8% of older properties being sold are classified as 'energy misselling': an increase of 1% from 2021.

In Ile-de-France, the figures are alarming - +28% of properties classified as F and G are put on the market between January and September 2022. Just 11% of the region's market supply. "There's a real problem here because rents are higher and the ban on Class G properties will affect owners," says Stephane Fritz. "The cost of work in Paris is much higher than in the provinces, so it makes a serious difference."

Start an energy transformation or sell? Many owners have decided to sell their properties. "There is a hierarchy in classification," continues the CEO of Guy Hoquet. "Classes A to C are sold on average in the range of 3,200 to 3,700 euros per square meter, while classes F and G are sold at a price of 2,500 euros per square meter."

How much does it cost to move from one energy class to another? "On average, it will cost about 17,000 euros for 50 square meters," says Stefan Fritz, expressing some doubts. He concludes: "The market volume may remain the same, but we know that the situation in the market will change. The next few months will be a bit challenging, particularly affecting the rental market."