【France】Real Estate Market in 2024: Our Brokers Speak Out

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Editor’s Note

The following article addresses key questions about France’s real estate market, analyzing current positive indicators and exploring the potential long-term impact of major events like the upcoming Olympic Games.

Pierre Brignou, courtier en crédit immobilier au Havre
What is your analysis of the market in your city and in France after these positive signs?
Do you think real estate will benefit from the Olympic effect like London or Sydney?
Real estate market: what are your forecasts for the second half of 2024?
What are the challenges that real estate must overcome to get back on track, in your opinion?

If, like us, you follow real estate market news, you have probably noticed that this sector is regaining color, after having been the victim of a crisis that some professionals—real estate agents, brokers, developers, notaries, etc.—have described as unprecedented.
As we have recently read here and especially there, on our Ymanci site, the trend for a recovery is optimistic thanks to several factors, starting with the stabilization, or even the timid decline in borrowing rates, as noted by the National Institute of Statistics and Economic Studies (Insee):

“The stabilization visible since the drop in rates at the beginning of 2024 suggests that the collapse in the real estate market could be coming to an end.”
Florence Carpentier journaliste de la presse écrite

Rates today reach an average of 3.70% for a standard 20-year mortgage. This drop in rates has a positive impact on the borrowing capacity of the French as well as on their real estate purchasing power. Even if we are still far from the situation in 2021. Let’s remember that these rates went from 1% in 2021 to over 4% at the end of 2023.
Real estate purchasing power is growing in many French cities and can even allow buyers to afford a larger home if they wish. This is also a positive sign for the market and for the French who want to bring the project of becoming homeowners back to the forefront.
In addition to the improvement in real estate purchasing power and interest rates, the real estate market, which remains a safe investment for more than 8 out of 10 French people according to Orpi, also benefits from:
– The drop in selling prices: some sellers have agreed to set more reasonable prices after months of tension.
– The decline in usury rates.
– The easing of the European Central Bank’s (ECB) key interest rates, the main monetary institution of the European Union.
– The relaxation of lending conditions by some commercial banks.

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Certainly, these signs seem encouraging. But couldn’t the uncertain and tense French political context risk derailing everything? Will these good news really offer the real estate market a fresh start? To answer these questions, we needed real estate professionals, knowledgeable observers, capable of shedding light on the current and future situation. Perfect timing! Thanks to Ymanci, specialized in credit repurchase since 1999, mortgages, and borrower insurance, we were able to give the floor to four brokers, out of the 500 qualified to advance your projects, but who have been, like you Dear Borrowers, confronted with the harsh reality of a real estate market in crisis.
Today, Delphine, Pierre, Mickaël, and Roméo present their views on the state of the market.

What is your analysis of the market in your city and in France after these positive signs?

Delphine for the Ymanci broker agency in Clermont-Ferrand:

“The drop in interest rates in our region has revived interest in property purchases, particularly among clients from 2022 and 2023 who had postponed their project due to rising rates and decreasing purchasing power. Today, informing clients that rates are dropping each month is a very positive asset. It reduces the pressure to buy quickly and increases their purchasing capacity. However, we are not observing any relaxation in loan approval conditions. The HCSF regulation still blocks certain profiles, first-time buyers, but especially investors. The files accepted today are those that would have been accepted two years ago.”

Pierre for the Ymanci mortgage broker agency in Le Havre:

“Recent changes in credit conditions can energize the real estate market in Le Havre. The combination of lower interest rates, the recalculation of the usury rate, and the easing of credit approval conditions creates an environment favorable to real estate purchase and investment. It is likely that this will lead to an increase in demand, greater development, and potentially a rise in prices, while improving access to property ownership for a greater number of households. Le Havre, being a port city with a diversified economy, could attract more buyers, particularly those seeking affordable housing compared to large metropolises like Paris, thereby improving the city’s attractiveness.”
Delphine Gendre, courtière en crédit immobilier à Clermont-Ferrand

Roméo from the Ymanci mortgage broker agency in Toulon:

“Well, in the Greater Toulon area, a city of 170,000 inhabitants and nearing 500,000 in the wider metropolitan area, after two complicated years, there is a timid recovery. But prices in our area are very disparate, from popular zones to priceless zones. It can range from €2,000 per m² to over €6,000 per m², or even beyond. On average, prices have fallen by 4.5% across the entire market.”
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⏰ Published on: July 19, 2024