France: Real Estate Prices Are Rising Again In Many Cities
The real estate market is regaining color. After a long period of waiting, prices are rising again in many French cities, signaling an unexpected turning point in the market. This tremor, which began at the start of the year, is intensifying due to more attractive borrowing rates and a gradual return of buyers. Both professionals and individuals are monitoring this emerging dynamic, which reshuffles the cards after months of stagnation. In light of this revival in activity, observers are questioning: is this merely a temporary rebound or a genuine cycle reversal?
A surge in prices per square meter in several cities
The month of March confirms a general recovery in real estate prices in France. Among the 29 main urban areas analyzed, 17 show a monthly increase in prices per square meter.
Medium-sized cities are recording the most notable progressions. Even the capital is not escaping this dynamic with a measured progression.
This movement is part of a more favorable climate for purchasing. Financing conditions in France have improved, reviving buyers’ interest.
Here are some key figures extracted from this trend:
- Calais: +5.9% in one month.
- Colmar: +5%.
- Pau: +4.2%.
- Saint-Nazaire: +3.8%.
- Paris: +0.2%, a sign of a stir in the heart of the capital.
- Toulon and Nantes are also among the notable increases.
This recovery is closely linked to the easing of credit rates. Moreover, some profiles are now obtaining mortgages at less than 3%, giving a boost to demand.
Sales timelines are also shortening, and several professionals speak of a “tangible warming of the market”, illustrating the return of activity in segments that have been declining until now. Thus, the accumulation of these signals indicates a cycle inversion that the sector is observing closely.
A broader consolidation in medium-sized cities
Beyond the occasional increases observed in certain metropolises, a global dynamic has been emerging for several months. The proportion of cities with more than 40,000 inhabitants that are recording a price increase has risen from 16% in June 2024 to 42% today, indicates Meilleurtaux.
This figure shows that the recovery is not isolated but firmly rooted in a national trend. The average price signed per square meter, across all types of properties, now reaches 3,254 euros.
This consolidation is set against a backdrop where buyers anticipate a gradual rise in prices and seek to secure still favorable financing conditions.
According to experts from Meilleurtaux, “the slow but steady rise in prices could extend into the second half, provided the rates remain stable and household confidence is maintained”. Medium-sized cities in France seem to be benefiting due to enhanced attractiveness since the pandemic and price levels that are still accessible compared to large metropolises.
While this recovery provides a positive signal for the sector, it also requires vigilance and clear-sightedness. The restart of prices could exacerbate territorial inequalities, particularly between growing cities and those still struggling. Furthermore, any sudden variation in rates or a deterioration in the economic situation could quickly reverse the trend. Stakeholders will need to closely monitor these parameters to adapt their strategies to a transitioning market in France.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.