Covid-19, one year later: what impact on real estate purchasing power? – EconomyMorning

For the past year, the world has been experiencing an unprecedented health crisis which has impacted the French more every day. Despite several lockdowns, the real estate sector is maintaining a good cruising speed with French people who continue to plan and pursue their acquisition project. And if the year 2020 will have finally been better than the context would suggest, with only -20.9% less real estate financing requests over the year, the purchasing power of the French has been impacted by the crisis due in particular to a change in demand. takes stock by taking stock of the evolution of real estate purchasing power in the 20 largest cities in France between March 2020 and March 2021 *.

A decrease in real estate purchasing power which is accentuated

First observation: 2021 confirms a trend that began in 2020, so with the exception of Marseille and Paris, all the inhabitants of the large cities of France have lost m2 when purchasing compared to last year. If the most interesting cities in terms of purchasing power remain as in 2020: Saint-Etienne, Le Mans and Nîmes, these 3 cities being the only ones that offer the possibility of acquiring goods of more than 100 m2 for a budget equivalent to that of the previous year, however, they are experiencing the full force of the trend and are losing respectively: 6, 7 and 9 m2 in 2021.

Only Marseille reverses the trend by gaining 1m2 in 2021, this year it is thus possible to acquire a property of 68 m2 there against 67 m2 for the same budget as 2020, Paris is also doing well by remaining in balance.

Beyond Marseille and Paris, all the cities are losing purchasing power, Nîmes, Reims and Angers, record the biggest drops, losing 9 m2, 10 m2 and 17 m2 respectively compared to 2020. Particularly strong figures when Nîmes and Reims were the only cities in 2020 not to experience a drop in their purchasing power.

Lower rates but higher prices for almost all of the cities in the ranking

If in 2020 the rates were up, it is interesting to note that in 2021, despite the continuing health crisis, over 20 years they have decreased very little, going from 0.81% to 0.75%. The context will therefore have little influence on rates, however its impact on prices is significant with an increase in the price per m2 for all the cities in the ranking. boosted by a still very strong demand, with the exception of Marseille and Paris which manage to remain in balance and even gain purchasing power symbolically.

Among the cities having experienced the most significant increases in the price per m2, there are in the top 3: Lyon, Angers, and Nantes with increases of 662 euros, 559 euros and 400 euros per m2.

It should be noted that some medium-sized cities have recorded reasonable increases in the price per m2 (less than 100 euros / m2) the fact remains that they lose several m2 in the purchase, like Toulon and Saint -Etienne, who still lose 4 m2 and 6 m2 compared to 2020 with the same budget.

Some upheavals in the ranking

Compared to 2020, the ranking remains more or less the same, with Saint-Etienne, Le Mans, Nîmes and Le Havre still at the top of the ranking with the highest purchasing power and Paris, Lyon, Bordeaux, Nice, Nantes and Rennes at the top. At the end of the ranking, the latter remain the cities which offer the smallest surfaces for the same budget.

In addition, 4 cities lose their place in this 2021 ranking. This is the case of Angers, Montpellier, Lille and Strasbourg. They all lose between 5 and 17 m2, with Angers suffering the greatest variation in purchasing power and moving from 5th place to 9th place, losing 17 m2, the size of a salon.

Conversely: Toulon, Dijon, Grenoble and Marseille, nibble a few places to rank respectively at 5.6, 8 and 10th place.

The craze for medium-sized cities which has an impact on prices

The crisis seems to have changed the preferences of the French in terms of real estate. More and more of them are abandoning large cities in favor of medium-sized cities, and this directly impacts prices and surface areas, since on average the French have lost 5 m², while large cities that have been particularly attractive up to now, such as Paris, Lyon and Bordeaux, for example, have lost between 0 and 4 m². Thus, many cities which were until then spared by the rise in real estate prices are experiencing profound upheavals, such as Nîmes, Reims or Angers. The trend could well continue if the crisis were to persist and with it the very strong predominance of teleworking. Another indicator to watch remains that of rates, still very low.