Paris and Ile-de-France are no longer an exception. The significant drop in housing prices, already observed in the Paris region since the fall of 2022, now concerns the whole of France. Prices of old real estate thus fell by 4% over one year at the end of 2023, nationally, according to the Notaires-Insee index published Thursday February 29, while six months earlier, they still increased by 0 .5%.
With a time lag, this turnaround can be explained by the decline in the volume of transactions, which began a little over two years ago. Between 2021 and 2023, the annual volume of transactions collapsed by 26% in France, going from nearly 1.2 million to 870,000 sales. “The solvency of households no longer allows us to see first-time buyers, the wait-and-see attitude is now very present”, notes Elodie Frémont, spokesperson for the Chamber of Notaries of Greater Paris. The sharp and rapid rise in interest rates has made it much more difficult for households to access loans, while banks have also shown great reluctance.
If the drop in prices is now global, its intensity varies depending on the territory. In the capital, the decline is more severe: the price per square meter stands at 9,770 euros in the fourth quarter of 2023, a fall of almost 7% in one year. ” And it’s not over “, warn notaries, based on their advanced indicators. According to preliminary contracts, the price per square meter in Paris should fall to 9,410 euros next April, a drop of 8% in one year, and even more than 13% compared to the peak of November 2020. “The price, in current euros, would thus be brought back to the level of summer 2018”underline the Notaries of Greater Paris.
The Notre-Dame district is an exception
At the end of 2023, not only did all the Parisian districts record an annual decrease in their prices, but this was vigorous (greater than 5%) for thirteen of them. The biggest drops concern the least expensive districts located on the eastern outskirts, such as 13e (– 12%) or the 19the (– 9%), a sector which falls below 8,000 euros per square meter.
Prices are falling less sharply in the center and upscale neighborhoods (– 3% in Paris Center and in the 8e), “particularly thanks to foreign buyers, who benefit from high purchasing power and can do without a mortgage”says Olivier Clermont, notary in Paris. “A reversal of the developments observed during the 2008 financial crisis, during which the most expensive districts saw their prices fall the fastest”notes his colleague Thierry Delesalle.
You have 33.06% of this article left to read. The rest is reserved for subscribers.