Neighboring France: Shrinking real estate market

Real estate sales in the highlands of Savoie and in the department of En are down almost 10% compared to last year due to higher interest rates. Published: 12.10.2023, 05:10 pm.

Rising interest rates are having a negative impact on the number of real estate transactions in neighboring France. Lucien Fortunati

The real estate market is slowing down in neighboring France. From July 2022 to June 2023, 37,020 residential properties were sold, 2,906 fewer than the previous year, when 39,926 transactions were recorded. This was announced on Tuesday in Annecy by FNAIM Savoy Mont-Blanc.

In detail, the decrease is 11.6% in Ain, 8% in Haute-Savoie and 7.1% in Savoie. In comparison, the average decrease in France is 13.6%.

Lack of customers

This decline in the market is the result of the increase in interest rates (+4%) in France, which increases the cost of acquiring real estate and reduces credit options for some buyers. "Sellers are not interested in lowering prices when dealing with constant demand, especially in Haute-Savoie with its proximity to Switzerland," notes Sébastien Cartier, president of FNAIM Savoy Mont-Blanc. However, "the area is still very attractive," emphasizes Sébastien Cartier, president of FNAIM Savoy Mont-Blanc, quoted in the press release. "Sellers are not interested in lowering prices when dealing with constant demand, especially in Haute Savoie with its proximity to Switzerland, Lake Geneva or the very popular Annecy."

Slight price reduction

Prices, respectively.

On September 1, the average price per square meter (old housing again) of an apartment was 2493 euros in Ain and 4528 euros in Haute-Savoie. For a house, the average price was €2,569 in Ain and €4,853 in Haute-Savoie.

The slowdown in Switzerland, too

Our country is also facing the same phenomenon and for the same reasons. The number of real estate sales has plummeted due to rising mortgage interest rates, curbing demand while supply remains flat. Transaction volume peaked in 2021, during the Covid-19 pandemic. However, compared to that period, transactions are now down 30-40%, said experts from Raiffeisen Bank and real estate services company CIFI, interviewed by the Tribune de Genève and 24 heures newspapers.

Fabrice Breithaupt is a journalist and editor. He covers Franco-Swiss cross-border issues as well as real estate, employment and education. He has been an RP journalist since 1995 (radio, then print).