The health crisis has changed the desires of the French in terms of real estate purchases: exit the big cities and their narrow apartments and hello houses with gardens or, at least, a terrace. This will change the dynamics of the market but, as a whole, the latter should only experience a simple slowdown in growth, according to Standard & Poor’s.
Real estate prices still on the rise
While some believe that the real estate market, in 2021, could well experience a period of decline in France because of the economic crisis, this will not be the case according to S&P. Certainly, at the local level it will be possible to see changes, especially in areas that have lost attractiveness due to the health crisis … but real estate remains a safe bet.
The economic research firm therefore anticipates overall price growth in Europe… and this until 2023. Two exceptions, however: in 2021, Italy could experience a very slight drop in prices, of 0.5%, while the United Kingdom will bear the brunt of Brexit and see its prices fall by 2.3%. For all other countries, the increase will be there.
Slowdown in the increase in France
As for France, the impact of the economic crisis linked to the health crisis will be felt: in 2021, S&P only anticipates a 1.5% rise in house prices, compared to 3.9% in 2019 and 4% in 2020. A slowdown that will last in 2022 and 2023 with prices which should only increase by 2%.
Ireland, on the other hand, is expected to experience a price explosion, driven by Brexit: while the country has recorded increases of only 0.8% and 1% in 2019 and 2020, from 2021 prices will rise, according to S&P, by 2.7% … and even 4.5% and 4% the following two years.