Property Prices in France Still Falling…Except in One Place…

It’s more of the same, this time as reported by the Fédération Nationale de l’Immobilier of France (FNAIM). Property prices have fallen significantly. In Paris, the cumulative fall since Covid is the sharpest since the turn of the century.

Since 2023, the housing market has slowed significantly. The quadrupling of interest rates in two years led to a fall in sales in 2023, even though lending rates fell back slightly to 3.73% at the end of May 2024. In January, FNAIM predicted a drop in activity of 8% to 800,000 sales in 2024, as well as an acceleration in the fall in prices. At this stage, the facts do not belie these forecasts. The decline in the number of transactions continues, reaching 822,000 sales in France (-23% year-on-year) over a rolling 12-month period to the end of March 2024. Prices are following in its wake, continuing to fall (-3.8% year-on-year).

The fall in prices concerns almost all territories and regions…except for one. Over the past year, prices have fallen in Paris (-7.7%) and in all major cities, with the exception of Nice. Paris is moving away from the €10,000/m2 mark (at €9,476 for apartments) and the cumulative fall in prices there has been 14% since September 2020, and even 28% in constant euros (adjusted for inflation)! Major cities and their suburbs have borne the full brunt of rising interest rates.

Read the report by downloading their PDF.

Meanwhile, FNAIM issued a report detailing the property market in France’s coastal regions. They highlighted that there are 520 municipalities along the French coastline, with nearly half of the homes in these areas being secondary residences. The coastal areas of France make up one-third of all second homes. Why are we not surprised?

Three seaside resorts on the Côte d’Azur boast the highest average real estate prices in the country. Ramatuelle (Var) on the Saint-Tropez peninsula tops the list at €16,083 per square meter, followed by Saint-Jean-Cap-Ferrat (Alpes-Maritimes) at €15,819, and Saint-Tropez (Var) at €14,400. On the Atlantic coast, Lège-Cap-Ferret is the most expensive commune at €11,676 per square meter, followed by Soorts-Hossegor (€9,132) and Les Portes-en-Ré (€8,088). Along the Channel coast, the priciest areas are Le Touquet-Paris-Plage (€8,496) and Deauville (€6,296).

Across all 520 seaside resorts analyzed by FNAIM, the average price per square meter stands at €4,514, compared to €2,933 for France as a whole. Over the past year, prices have decreased by 2.7%, which is less than the national decline of 3.9%. Over the past decade, real estate in seaside resorts has appreciated significantly more than the national average. This trend is largely attributed to the increased desire for open space during the 2020-2023 period following lockdowns. The highest average prices are in Provence-Alpes-Côte d’Azur (€5,820 per square meter, +0.3% year-on-year) and Nouvelle-Aquitaine (€5,044, -6.3%). In contrast, the lowest prices are in Normandy (€3,394, -4.5%) and Brittany (€3,538, -1.9%).

Now’s the time to consider a purchase in France. Either take advantage of the low prices in most of the country or get into a property in Nice and environs before prices go up even further! For more information of our services, visit our website.

A bientôt,