The French real estate market is running at several speeds.
While the price increase in Bordeaux reached 17% in 2017, the market in the Bordeaux region is now stabilizing. In the first five months of the year, the price per square meter fell even very slightly compared to the same period last year (-0.1%), according to data unveiled on Tuesday by the network Guy Hoquet.
If in Bordeaux the euphoria has calmed down, other cities have taken up the torch. This is the case, for example, in Lyon, which was left behind by the pearl of Aquitaine in 2017, despite its historically greater economic appeal. Prices jumped 8% year-on-year, and at 3,950 euros per square meter, they should quickly catch up with those in Bordeaux. The average budget also progresses to 270.180 euros (+ 12.7% over one year, which represents 68.4 m2), again not far from what is observed in Bordeaux.
Paris on its side plays in another league. The capital is expected to explode the bar of 10,000 euros per m2 before the end of the year, according to forecasts by Fabrice Abraham, CEO of Guy Hoquet. From January to May, the price of Parisian apartments rose by 6.8% compared to the same period of 2017. One square meter is now worth 9,510 euros, twice as much as in Bordeaux or Lyon.
Buyers are struggling to keep up as their average budget is growing at a slower pace (+ 5% to 473,598 euros) than prices. The average surface purchased then peaks at 49.8 m2. In this tense market, sales times are always shorter and average 61 days (three days less than a year ago). “And again, it’s an average that takes all the property, including those that have the hardest to sell as the ground floor exposed north and overestimated by 30%. price and that it corresponds to the demand, it is sold in less than seven days in Paris “, explains Fabrice Abraham.
A reasonable market outside the big cities
As traditionally, the city of light pulls the rest of the region. In Ile-de-France, prices rise on average by 2.2%, with a square meter trading at 3.501 euros. However, with a stable budget, purchasers Ile de France are forced to review their claims downward and aim for smaller homes. The average purchased area thus decreases by 2.4 m2 to 79.4 m2.
Outside these major cities and the Paris region, the market is much quieter. In the provinces, prices were stable (+ 0.7% to € 1,923) and, more generally at the national level, the square meter progressed slightly (+ 1.2% over one year on the whole territory to € 2,545 per m2 ). Little surprise, the network Guy Hoquet records sales up 4.2% over the first five months of the year. The number of credits granted since the beginning of the year is however decreasing. How to explain this paradox? By the gap of three months between the signing of the sales agreement and the release of the funds after the signature of the authentic deed in front of the notary. In other words, the market would be far from collapsing but this should not be reflected in the figures of notaries and banks that within a few months.
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