France – Notary Real Estate Economic Note at the end of 2021

Summary

  1. From November 2020 to November 2021, 1.201 million transactions for existing buildings recorded in France, an increase of 17.5% over one year slowing down since August (stabilization to be expected around 1 to 1.1 million).
  2. Real estate projects supported by low credit rates (1.12% in November) and the social and economic shock absorbers put in place during the Covid-19 pandemic (but about to be eliminated).
  3. Prices on the rise: +5.2% over year for apartments over one year and +9% for houses. More sustained increase outside Paris’ region (+8.8%) than in the capital’s region Ile-de-France (+4%).
  4. The pre-contracts show a continuation of the rise in prices but at a slower pace, especially in medium-sized cities.
  5. New coercive measures on the conditions for granting credit since 1 January 2022 to preserve the solvency of purchasers
  6. Concern on the new constructions market, the low production in new units mechanically increases the prices of the old
  7. The impacts of the Climate Law and the new Energy Performance Diagnostics (DPE) not yet visible on housing sales in energy classes F and G.
  8. Non-resident foreign buyers are still less represented, but they are buying larger units (due to change of location, outside cities). The British are still the most represented (22%) but down since Brexit, soon supplemented by the Belgians (20%) and ahead of the Germans (9%).

Link to the full report

Prices and evolution for apartments and houses in France over one year at the end of the third quarter of 2021

Evolution of transaction volumes in France

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