What you need to know about the housing market in France in 2023
The residential real estate market in France in 2023 presents challenges and opportunities for future owners looking for an apartment or a house. Several key trends and factors need to be considered in order to understand the current market and make an informed choice. This article will introduce you to these essentials.
Rising interest rates
After a period of historically low interest rates, they have started to rise since the end of 2022. This rise in interest rates has an impact on real estate loans, increasing the cost of credit and making the purchase of real estate more expensive for buyers. The decrease in purchasing power is estimated at around 6%. Rates in April are still on an upward trend. Credits are more difficult to get. Specialists are wondering about a possible recovery in May or June. In the end, a fairly frequent question arises among future buyers: Will real estate fall in 2023?
Prices and sales volumes
The real estate market is tending to turn around (without however collapsing), selling prices are stagnant, or even falling after rising sharply for several years. Moreover, after multiplying, trading volumes are also falling. This drop is visible in the regions where prices have increased the most. It is particularly pronounced on the west coast. However, there are differences between Paris and the big cities where prices tend to decrease compared to medium-sized cities. Prices are rising almost twice as fast as in big cities. In seaside resorts, prices tend to soar. However, signs of price declines are appearing all over the country. This trend has an impact on the strategy of buyers and the negotiation of prices. Listing times are getting longer; buyers' negotiation levels are increasing.
Importance of location
Location remains a determining factor in the choice of real estate. Attractive and well-connected areas, such as big cities and their close suburbs, continue to attract the interest of buyers. Major provincial cities have seen their attractiveness explode in recent years. Prices have soared there, but seem to have calmed down in recent months. Some rural and peri-urban areas also offer opportunities for those looking for a quieter and more affordable living environment.
Ecological and energy transition
The ecological and energy transition has become a major challenge for buyers. Future owners are increasingly paying attention to the energy performance of properties, to the ecological materials used and to the presence of green spaces. Environmentally friendly and energy-efficient housing is now an asset in the real estate market. Real estate classified F and G will be prohibited for rent in 2028 and 2025 respectively. This may cause the selling prices of these apartments to fall. For the E label the ban will take place in 2034.
Digitalization of the market
The real estate market has largely digitized in recent years. Buyers do their research online, visit properties remotely, in virtual reality, and sign electronic documents. This digitization facilitates procedures and saves time, but it is essential to remain vigilant about the quality of information available on online platforms, especially with regard to sales price estimates.
Role of real estate professionals
Real estate professionals, such as real estate agents and property hunters, play a key role in supporting buyers and sellers. In a complex market, being accompanied by a real estate hunter can be a winning bet for buyers. In particular to find the rare pearl more quickly, negotiate better and get advice on all legal aspects.
In conclusion: what is the state of the real estate market in 2023? The residential real estate market in France in 2023 presents challenges and opportunities for buyers looking for an apartment or a house. With interest rates rising, selling prices stagnating or falling, and trading volumes falling, it is essential to fully understand these trends in order to make an informed choice. Location, the ecological and energy transition, the digitalization of the market and support by real estate professionals are also key elements to take into account in order to successfully buy real estate in 2023. By being well informed and adapting to market changes, future owners will be able to find the property that meets their needs and expectations.
Learn more:
- Haussmannian apartment in Paris : where to find them?
- How to make yourself a Advice on a real estate hunter ?
- Living in a top floor apartment in Paris : 6 advantages
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