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The price of real estate finally drops in Paris!

undefined undefined 1 décembre 2023 undefined 17h29

undefined undefined 3 janvier 2024 undefined 12h43

The Editor

© Salomé Rateau / Le Bonbon

The prices of real estate continue to decline at the end of 2023. A decrease observed in Île-de-France and throughout the whole of France at a time when the housing crisis is unprecedented and access to bank credit is more than difficult.

Let's shout victory, well almost! The notaries of Greater Paris officially announced it last November 30th: the price per square meter in Paris has finally dropped below the €10,000 mark and is even expected to reach €9,760 by January 2024. So if you're from Clermont-Ferrand, we can imagine that this news might seem completely outlandish to you, but for us Parisians, it's absolutely exceptional (promise, we'll try to hold back our tears).


A continuous decline in Île-de-France

The drop in property prices seems to be continuing. If in the second quarter of 2023, prices for existing homes had already fallen by 3.1%, in the third quarter the decline is 5.3%. The same can be said for apartments and houses, with respective decreases citing It is from 5.3% to 5.4%." "This is not only happening in Paris city center, but also in the suburbs. Both the small and large outer areas are experiencing a decrease in prices of 6% and 4% respectively. And on a larger scale, other major French cities such as Lyon, Nantes, and Rennes are also facing a significant decrease in prices."


Prices are dropping, so are sales

If prices are falling, so are housing sales. In August 2023, only 955,000 properties were purchased, a decrease of 17% compared to the previous year. The difficult access to bank loans partly explains this historic decline in sales. " The significant increase in mortgage rates since early 2022 necessitates this price drop to preserve buyers' purchasing power. We are seeing a sharp decline in demand," explains the National Federation of Real Estate (FNAIM) in its economic report for November.

But precisely, with the decrease in prices, buying a property becomes more affordable for potential buyers.

With lower prices and available goods, this period could be particularly favorable for buyers. Even if "the decrease in prices is still relatively modest and far from compensating for the rise in rates," the FNAIM states that "we are witnessing a change in cycle and a market rebalancing in favor of buyers, who are regaining power."