In 2024, the French residential real estate market went through a period of adjustment and stabilization after the previous price increases. According to the National Institute for Statistics and Economic Research (INSEE), in the third quarter of 2024, secondary housing prices fell by 3.96% year-on-year, the fifth consecutive quarter of decline.
Key trends in 2024:
Declining prices: In the Ile-de-France region, including Paris, secondary housing prices fell by 5.24% year-on-year, reaching €6,150 per square meter. In Paris itself, the decline was 5.56%, with an average price of €9,520 per square meter.
Decrease in investment activity: Investments in rental property declined significantly due to rising interest rates and tightening credit conditions.
Shortage of rental housing: There was an acute shortage of affordable rental housing in major cities, especially in Paris, which made it difficult for students and young professionals to find accommodation.
Forecast for 2025:
Experts expect the French residential real estate market to continue to stabilize in 2025. The National Real Estate Federation of France (FNAIM) predicts that prices will stabilize in the first half of 2025, and in the second half of the year, growth of 1% year-on-year will begin.
However, the market recovery will depend on lower mortgage rates and improved financing conditions, which will increase purchasing power. Geopolitical events and domestic housing policy will also play an important role.
Thus, 2024 was a watershed year for the French real estate market, marked by significant price adjustments, but also by the first signs of stabilization. Industry professionals expect a gradual recovery, which will depend on macroeconomic factors and government policy.
http://relocation.com.ua/rynok-zhytlovoi-nerukhomosti-frantsii-u-2024/
residential real estate in France
