Real estate In Lyon, the purchasing power of buyers is decreasing


Since January, with the 0.5 point rise in mortgage rates, the borrowing capacity of households has decreased by 5% in France. This increase in interest rates, coupled with that of prices in almost all of the major French cities, results in a loss of real estate purchasing power, observes Meilleurs Agents, specializing in online real estate valuation. According to its latest barometer *, large cities have lost between 1 and 5 m² since the beginning of the year, ie on average – 3 m².

Strasbourg: a loss of 5 m² of purchasing power

The city of Strasbourg is at the top of the ranking of cities where, unfortunately, real estate purchasing power has fallen the most since January. The reasons: prices have recorded the strongest national increase since the start of the year (+4.7%). “At an additional €177 per m² (€3,730 per m² on January 1, 2022, compared to €3,907 per m² on June 1, 2022) and €8,758 less in borrowing capacity (€170,161 in loan on January 1, compared to €161,403 on June 1) in just five months, property candidates have lost 5 m² of real estate purchasing power in Strasbourg due to the rise in loan rates”, analyzes Meilleurs Agents.

Same configuration in Marseille with prices up 2.5% since the start of the year, coupled with that of interest rates, ie a loss of purchasing power of 4 m².

Lyon, Lille, Rennes limit breakage

In Lyon, Lille, Rennes and Nice, the loss of real estate purchasing power is limited to -2 m². While it is – 3 m² in Bordeaux, Nantes, Montpellier and Toulouse.

Paris: only – 1 m²

In the capital, if the fall in prices was not sufficient to offset the rise in interest rates, it only caused buyers to lose 1 m².

Wait for a fall in prices to increase its real estate purchasing power?

For Best Agents, be careful not to be too greedy. To maintain the same real estate purchasing power, “prices would have to drop significantly to compensate for the increase in rates. For example, at the beginning of June, just to erase the rise of recent months since January, prices should already have fallen by 5%, whereas for the moment they have evolved on average by + 1.3 % in France…”, he observes.

* Real estate purchasing power is calculated for a representative household with median incomes in the city, taking out a 20-year loan with an effort rate of 33% and an interest rate of 1% in January 2022 and 1 .5% in June 2022.



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