2024-01-03 11:32:38
Declining purchasing power, combined with a significant increase in borrowing rates, has significantly impacted the real estate market in France in 2023. Buyers have lost, in the largest cities, an average of 7 square meters. That said, the outlook predicts a very likely improvement for the year 2024.
The real estate sector is in crisis. The year 2023, marked by a significant increase in borrowing rates and a significant drop in purchasing power, impacted by the inflation rate, will not have recorded any recovery in the sector. Buyers have lost on average 7 square meters in the largest French cities, reports Le Parisien, revealing figures from a study by Best rates. It must be said that the stubbornness of sellers to lower prices, despite borrowing rates which have almost doubled in 2023 to reach 4.20%, compared to 2.20% in December 2022, has not helped anything. to the situation.
Why this spectacular decline in certain cities?
“With the rise in rates, for a monthly payment of 1,000 euros per month over twenty years, a French person has lost more than 30,000 euros in borrowing capacity compared to the end of 2022, at 162,187 euros compared to 194,020 euros twelve months earlier “, decorating The Parisian.
Thus, given the increase in prices observed across the cities, a potential buyer might no longer claim this average of 58 square meters. In December 2023, the average accessible to the buyer is reduced to just 51 square meters. “To compensate for the increase in rates over one year, prices would have had to fall by 15%. However, we are more likely to be – 5% to – 7%, when it drops”notes Maël Bernier, spokesperson for Best rates.
Toulon and Nîmes, the most affected
On the scale of the cities most affected by this drop in purchasing power in the real estate sector, it is Toulon and Nîmes which occupy the first two places, with 20 square meters lost, the equivalent of regarding two bedrooms, for the first, and 18 square meters wasted for the second. In Grenoble, the loss is 11 m². In Montpellier and Reims, it is -10 m² and in Dijon, minus 8 m².
In the other cities concerned by the study, we note that the loss of real estate purchasing power in 2023 was -7m² for Rennes, Marseille and Le Havre, -6m² for Toulouse, -5m² for Nice, Saint-Étienne and Strasbourg, -4m² for Bordeaux, -3m² for Le Mans, -2m² for Lille and Nantes, and finally -1m² for Angers.
Large metropolises spared thanks to compensation for price drops
“The decrease is particularly noticeable in medium-sized towns”underlines Maël Bernier, who will point out that “in large metropolises, the rise in rates was offset by the fall in prices”. Paris and Lyon have not lost a single square meter.
And this is good news which will bring more news for 2024, believes the spokesperson for Best rates. “It’s been two months since we’ve hardly seen a rate increase, although this has been the case for two years”comments, at BFM, Maël Bernier who will point out that there is now “banks which are starting to make offers once more by slightly lowering their rates”. And even if “the objective is not yet to reopen the floodgates”but just effort “repositioning on the market”these are indications of a “context prelude to a relaunch”concludes Ms. Bernier.
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