Boosted by a resurgence of post-containment attractiveness, homes are seeing their selling prices increase rapidly. As for apartments, the increase continues in the majority of large cities. While transaction volumes are trending down, a scent of recovery is however emerging in some regions.
+ 8.5% annual increase in house prices
By exacerbating the desires for space of the French, the confinements have undoubtedly put a spotlight on the houses and have propelled their selling prices at full speed In the old, we are witnessing an “acceleration of prices unknown since the middle of the 2000s in the home market. The increase thus amounts to 8.5% over 1 year compared to 5.5% at the same time in 2020 and 3.5% in 2019.. But the renewed attractiveness enjoyed by houses is not enough, on its own, to explain this sprint in house prices and, more generally, in the price of French property in general. Everywhere, the transformation of demand is strengthening with the accentuation of the difficulties of low-income households in accessing mortgage loans and carrying out their projects. The shift in activity towards products of better quality and more sought-after localization, and therefore more expensive, is reinforced in a market in recession and contributes to the self-maintenance of the upward movement.
In large cities, the rise in property prices continues
If house prices are recording an unprecedented acceleration, apartments are not to be outdone, especially in metropolitan areas! “For the 7th consecutive month, the price increases for old apartments can be seen in all towns with more than 100,000 inhabitants,” notes Michel Mouillart. In more? (35%) of large cities (Angers, Calais, Evreux, La Rochelle, Rennes, Troyes, etc.), the rise in apartment prices exceeds 10%. However, if the increase is unanimous, the acceleration is not. Prices are therefore increasing much less rapidly in 12% of large cities:
Transactions that are on the rise in some regions
+ 4.7% on the price per m² in Besançon (€ 2,177),
+ 7% on the price per m² in Caen (€ 2,718),
+ 7.2% on the price per m² in Dijon (€ 2,798),
+ 7.4% on the price per m² in Nancy (€ 2,437),
+ 1.8% on the price per m² in Perpignan (€ 1,574),
+ 6.7% on the price per m² in Saint-Denis (€ 4,060)…
Stifled by conditions of access to credit which, although having been recently relaxed, nonetheless remain very strict, demand is struggling. While demand usually picks up in February (on average since the early 2000s, + 13% between January and February), activity did not manage to take off: it even fell by more than 3% over one month. But while overall, real estate transactions are declining, it is interesting to note that in places, the trend is for the recovery. In some regions, activity is doing a little better than in 2020 and since the start of the year, demand has been picking up slowly in some of them. This phenomenon is observed in particular in regions where the rise in prices was contained in the past. In the Center, Franche-Comté, Haute-Normandie, Île-de-France and PACA regions, the increase in transactions thus reached 5% on average.
Selling prices negotiated more in the North of France than in the South
While the margins of negotiation on the prices – posted – of the houses (4.6%) continue their descent into hell, they tend to stabilize on the posted selling prices of the apartments (6.3%). On the other hand, the negotiations are more muscular in the North of the Loire than in the South. Margins are lowest (around 3%) in the southern half of the metropolitan area. On the other hand, they are almost double in the northern half, with the exception of Nord-Pas de Calais.