The notaries expected it, the confirmation arrived in November 2020: according to the data published by the notaries of France in the last economic report of the sector dated January 28, 2021, the prices in Paris mark the step … just like the projects of purchases. The Province, for its part, is attracting more and more people.
Towards a fall in real estate prices in Paris
For buyers of recent years, this is bad news… for those to come it could be an opportunity to buy a little bigger. According to French notaries, real estate prices in Paris will fall in the first quarter of 2021, according to data from pre-contracts, by 1.7% in February 2021. The price per square meter will drop from 10,850 euros to 10,700 euros in February 2021.
If over one year the trend remains up, from 3.4% to February 2021 according to the notaries of France, it is perhaps the beginning of the end of the real estate bubble of the Capital which has seen its prices explode for several years. In question ? The Covid-19, of course, and the desire to have a little bigger property and, possibly, a garden or an outside. However, with an overpriced real estate market, the capital does not allow this luxury to the average buyer.
The Province is popular, prices are rising
After the two confinements of the French population in 2020, a trend has emerged: the desire to live in the provinces. The market is therefore very active there, even if overall real estate in France is slowing down to only 980,000 transactions in 2020 and only 900,000 expected in 2021.
Medium-sized cities saw their prices increase in 2020. In the fourth quarter of 2020 alone, the increases were 3% over three months for houses and 2% for apartments. But the notaries of France emphasize that there is a wait-and-see attitude: according to the preliminary contracts, at the end of February 2021, the increases would only be 1.5%.