France real estate news
Real estate prices in many major cities in France have fallen by more than 10% in a year.
The real estate market is changing dramatically. According to data released by Orpi, France’s largest real estate agency network, the number of transactions (or more precisely the number of sales agreements signed) in the first quarter of 2023 fell by 25% compared to the same period last year. Sellers are finding it increasingly difficult to find buyers, and prices are starting to drop: from Q1 2022 to Q1 2023, down 1%.
France’s BFMTV reported that in some cities, the decline in prices per square meter was even more significant, even exceeding 10%. Examples include Rennes (down 14% in a year), Metz (down 13%), Nantes (down 11%) and Bordeaux (down 10%). Paris (down 6%) and Lyon (down 7%) are also struggling.
In contrast, house prices in Marseille are rising (up 6%). The most prominent is Caen, where house prices have soared by 24% in a year. Also worth mentioning are Cannes (up 14%), Brest (up 10%) or Reims (up 8%).
Only, in most cities where prices are still rising, sales are falling even faster than in the rest of France. In fact, the number of sales agreements signed fell by 27% in Cannes, 30% in Brest and 32% in Marseille. In addition, the market has been boosted by the sharp decline in house prices in certain cities, such as Rennes (transactions up 8% in a year) or Metz (up 9%).
Trapped market
“There are no sales agreements signed. Prices continue to rise in some large regions. In the west of France, prices are rising across the board. On the other hand, we are signing fewer sales agreements. So we finally realized that this is not possible.” Orpi France The boss Guillaume Martinaud (Guillaume Martinaud) explained on the 6th.
However, there are some exceptions, in some cities the price drop has been accompanied by a drop in transactions, such as Paris or Lyon. This could indicate that prices have not fallen enough to boost demand.
France real estate news
“It says something when you spend six months on the deal. It also says something when people stop looking at properties. It’s not a good price,” Guillaume Mano stressed. To boost sales, Orpi has also launched a business that offers lower commissions to realtors for clients who agree to “adjust prices.”
Although Orpi is the largest network of real estate agents in France, it will be a few months before we know whether these figures are confirmed by other networks and notaries.