Let us verify, if our forecasts of the real estate market made at the end of 2016 turn out to be correct in 2017.
Net acceleration of price increases in almost all major French cities.
Meilleursagent publishes the 89th edition of its monthly barometer of residential property prices in the ten largest cities in France.
One observation is clear, despite their recent upturn, rates and prices of real estate remain at an overall attractive level. Solvent households accelerate their purchases to take advantage of the windfall. Hence a further rise in prices in French metropolises.
Although the recent rise in mortgage interest rates remains contained, creditworthy households are accelerating their purchases to benefit from the windfall. Some very good records benefit from even lower rates up to 1% over shorter borrowing terms.
However, candidates for home ownership are fully aware that the exceptionally cheap credit will not last; As evidenced by the upward movement in rates recorded since the end of last year in the vast majority of lending institutions.
In addition, households are also faced with the recovery – confirmed and accentuated in this March barometer – of the rise in real estate prices in most major cities. “Under these conditions, buyers feel they need to accelerate their purchases before rates go up when prices are already climbing,” explains Sébastien de Lafond. What they do not pay to their banker through the low rates is partly in the price of the good they are willing to pay to the seller. The low rates mechanically fuel inflation. “
More so, than the impact of next less attractive credit conditions, it is that of the rise in prices in the big cities that reinforces the feeling of urgency.
Strong increases in Paris, Bordeaux, Lyon and Nantes
According to the barometer, prices in Paris rose by 2.4% by the 1st of March and the averages are similar to the peaks of 2011. The phenomenon is spreading to the Paris suburbs. In the small crown of the city, the increase reached 1.2% since the beginning of the year and 0.9% in the large corona.
In the capital, anticipate notaries Paris-Ile-de-France, in their real estate conference of February 23: “According to our indicators on advanced pre-contracts, the price per square meter would reach 8,520 euros in April, an Annual increase of 5.6%. “
In the regions, the rise in prices is more or less pronounced according to the metropolitan areas concerned. Two groups are distinguished. The first, like Paris, unites Bordeaux, Lyon and Nantes. These cities are experiencing strong price increases.
Bordeaux, for example, rose by 2.3% in February, up 4.3% from 1 January 2017 to 9% year-on-year. In Lyon, despite a start of the year down, the increase is + 5.4% over the past year. In western France, prices in Nantes climbed 0.8% in February and 2.2% from 1 January and 4.3% in one year.
The second group: Marseille, Montpellier, Toulouse, Strasbourg, Nice and Lille. Prices remain virtually stable with year-over-year increases between 0% and + 2%. In detail, we note:
Marseille (+ 2.1% over one year),
Montpellier (+ 1.7% over one year),
Toulouse (+ 2% over one year and + 0.4% since 1 January),
Strasbourg (+ 1.1% over one year and price stability in February),
Nice (+ 1.3% over one year),
Lille (+ 0.8% over one year, despite the declines in January and February (-1.6% over two months).
In the Lille metropolis, according to MeilleursAgents.com, “these are mainly due to the implementation of the rent framework that limits the hopes of return of investors. “
Cabinet Roche & Cie, chartered accountant in Lyon
Specialist in real estate and non-residents.