From February 2021 to February 2022, 1.187 million transactions for existing buildings, slightly down from the peak of August 2021 (1.212 millions) which shows that volumes are stabilizing.
However, it is especially the year 2021 that was abnormal where the French accelerated or even anticipated their real estate projects
The high inflation expected in 2022, especially on the energy side, could alter demand and thus lower volumes with “a rest to live” at half-mast for prospective buyers while wages have not increased correspondingly.
The rise in interest rates – modest so far compared to financial market developments – could also exclude some candidates who have to face higher required down-payments.
The rate of loan denials has not soared but banks are more demanding following government recommendations and as the economic outlook is more uncertain.
Credit production remained at a high level at 23.8 billion euros in February.
Credit rates, at 1.14% on average in February, remain significantly below the inflation rate.
The prices of old housing are up everywhere, to +7.2% on average over the year 2021. Over the past year, the increase has been much more visible for houses than for apartments.
Geographically, the increase is the strongest outside Paris’ region (+9%) while it slows down in the capital’s region Ile-de-France (+2.7% and even -1.6% in Paris over one year).
Pre-contracts in mainlandFrance show a continuation of the rise in prices in 2022. From May 2021 to May 2022, the price of houses would increase twice as fast as existing apartments (+9.9% versus +4.1%).
On the coast, the year 2021 was marked by significant increases (+8% for apartments, +16% for houses) but heterogeneous with more than 20% for residential buildings in Le Touquet, Saint-Hillaire-de-Riez and Les Sables d’Olonne and more than 20% for existing houses in Biscarosse, Saint-Pierre d’Oléron, La Baule, Saint-Malo, La Rochelle.
