2023 will have been “cataclysmic” for the construction of new housing according to the Federation of Real Estate Developers (FPI). Here are the 10 cities where falling prices are a reality.
The decline is underway. The Federation of Real Estate Developers (FPI) unveiled this Thursday the sales figures for new apartments for the last quarter of 2023 and also for the whole year.
The results are gloomy for these professionals: Reservations for new housing have fallen below the 100,000 mark, to 94,828. That is a drop of 26% compared to 2022! “Sales to individuals are eroding from quarter to quarter. In Q4 2023, they are three times lower than their pre-Covid level,” underlines the FPI.
A housing shortage in the medium term?
“This situation does not suggest any advanced signs of a favorable turnaround in the next six months. New housing subject to external cyclical constraints (rising rates, rising costs) is now experiencing a structural crisis. The crisis fuels the crisis: the drop in sales observed today is leading to the freezing or abandonment of new operations. A housing shortage is looming in the medium term,” estimates Pascal Boulanger, President of FPI France.
With the rise in real estate interest rates in particular, more and more households are having to give up buying a property immediately. As a result, in a context where demand is scarce, some developers are trying to lower prices. A very disparate reality depending on the location.
Big discounts, free transfer rights… Developers are slashing prices
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More than 5% price drop
Thus, the price per m2 decreases by 5.3%, between the last quarter of 2023 and the same period of 2022, in the agglomerations of Clermont-Ferrand Metropolisby 5.1% for Montpellier Mediterranean Metropolisby 4.3% for Nantes Metropolisby 3.6% for Angers-Loire Metropolisfrom 3% to Toulouse or in Île-de-France, from 1.9% to Reimsor even from 1.2% to Lyonfrom 1.1% to Rennes And Metropolis Tours. To a lesser extent, the decline is 0.9% at Aix-Marseille Metropolis.
Conversely, in some cities, prices continue to rise. This is particularly the case at Brest: +33.2% over a year!