Baino Estates LLC thoughts on France's realty market
In the second quarter of 2023, prices in the French secondary real estate market increased by 6.8% year on year (compared to the same period of the previous year). Apartments increased in price by 4.5%, and houses - by 8.4% Baino Estates LLC analysts say.
General dynamics #
In the Île-de-France metropolitan area, housing prices rose by 2.2%. Apartments increased in price by only 0.7%, while the cost of houses increased by 5.4%. A faster price trend in the villa segment has been observed in the region since the fourth quarter of 2020. In the historical center of the French capital itself, apartments generally fell in price by 0.8% over the year. In the Parisian suburb (Petit Paris) prices rose by 1.2%, in Greater Paris - by 4.1%. A villa in Petit Paris today can be bought for 4.5% more than a year ago, in the Greater - it’s 5.8% more expensive.
In the French provinces, the rapid growth in prices for residential real estate continues. The overall positive dynamics for the year is 8.6%. Apartments have risen in price by 7.6%, houses - by 9.0%.
Regional Markets #
The three main local markets in France outside the capital region are Auvergne-Rhone-Alpes, Hauts-de-France and Provence-Alpes-Côte d’Azur, where real estate prices on the secondary market have been rising on an annual basis by 7.9%, 6.4% and 8.2% respectively. Apartments in the Auvergne-Rhone-Alpes region rose in price by 6.1% over the year, but at the same time in the administrative center of the region - Lyon - prices remained unchanged. In the regions of Hauts-de-France and Provence-Alpes-Côte d’Azur, house prices rose by 7.4%. The capital of the first of them, Lille, the dynamics is about the same, and in the capital of the second, Marseille, has reached double-digit growth - 10%. Villas in Auvergne-Rhone-Alpes rose in price by 9.4% (as in Lyon), in Hauts-de-France - by 6.2% (in Lille - by 5.8%), in Provence-Alpes - Cote d’Azur - by 8.9% (as in Marseille).
Separately, statistics are given for apartments, broken down by population. In settlements with a population of more than 10 thousand, the increase in prices amounted to 7.3%, in small towns and rural areas - 9.8%. For houses, such statistics have not been calculated.
Baino Estates LLC experts note that, despite the rise in prices, the number of property purchase and sale transactions in France decreased in the second quarter. Investors looking to capitalize on assets are cautious about their risks, believing that the French real estate market is again close to its growth ceiling at this stage. Now the French real estate market is of interest mostly to established investors.
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