The French property market in 2024 is experiencing a decline in sales volume, which can be attributed to the current inflationary environment and the sharp and rapid rise in interest rates. According to the projections from preliminary contracts at the end of July 2023, prices of old dwellings in metropolitan France enter a declining phase: after the gradual deceleration of the price increase observed since September 2022, prices are expected to decrease by 1% year-on-year. The decline of the multi-unit dwelling market (down 1.4% year-on-year) was stronger than that recorded on the single-unit dwelling market (-0.7%) .
In addition to the above, the French property market is also experiencing a supply shortage, which is leading to a slowdown in the market. The supply of properties for sale is slowly dwindling, making it difficult to maintain such high sales volumes.
Here are some additional trends to consider:
- Inflation pressures 2024: The inflationary environment is expected to continue in 2024, which will have a significant impact on the French property market. The cost of living will continue to rise, which will make it more difficult for people to afford homes.
- Rising interest rates: Interest rates are expected to rise in 2024, which will make it more difficult for people to obtain mortgages. This will lead to a slowdown in the housing market, as fewer people will be able to afford to buy homes.
- Energy crisis: The energy crisis is expected to continue in 2024, which will have a significant impact on the French property market. Fuel prices are expected to rise, which will increase the cost of living and make it more difficult for people to afford homes.
- Ukraine war: The Ukraine war is expected to continue in 2024, which will have a significant impact on the French property market. The global conflict is expected to lead to an increase in energy prices, which will make it more difficult for people to afford homes .
- Housing demand: Housing demand is expected to remain strong in 2024, despite the challenges facing the French property market. There is still a significant demand for homes in France, which will help to support the market .
- House prices 2024: House prices are expected to continue to decline in 2024, due to the challenges facing the French property market. However, the decline is expected to be relatively modest, which will help to support the market .
- Property sales: Property sales are expected to continue to decline in 2024, due to the challenges facing the French property market. However, the decline is expected to be relatively modest, which will help to support the market .
- Housing loans: Housing loans are expected to become more difficult to obtain in 2024, due to the challenges facing the French property market. This will lead to a slowdown in the housing market, as fewer people will be able to afford to buy homes .
- Mortgage interest rates: Mortgage interest rates are expected to rise in 2024, which will make it more difficult for people to obtain mortgages. This will lead to a slowdown in the housing market, as fewer people will be able to afford to buy homes .
- Economy outlook: The French economy is expected to continue to grow in 2024, despite the challenges facing the French property market. This will help to support the market and ensure that it remains stable .
- Rural France: Rural France is expected to remain an attractive destination for people looking to buy homes in 2024. The countryside and provincial areas of France offer a more relaxed pace of life, which is appealing to many people .
- New build homes: New build homes are expected to become more popular in 2024, due to the challenges facing the French property market. New build homes offer a more affordable option for people looking to buy homes, which will help to support the market .
Here are some additional insights to consider:
- Impact of the pandemic: The COVID-19 pandemic has had a significant impact on the French property market. The pandemic has led to a slowdown in the market, as fewer people are buying homes. However, the market is expected to recover in the coming years .
- Impact of Brexit: Brexit has had a significant impact on the French property market. British people make up a significant proportion of buyers and owners on the French Riviera. However, Brexit has led to a reduction in the amount of time that British people can spend in the EU, which has had a negative impact on the market .
- Impact of taxes: The French government is actively trying to make real estate more affordable by adding cumbersome taxes for second homes and thinking up multiple other ways to disincentivize house-flipping, investment purchases, AirBnb rentals, and vacation homes. This is expected to have a significant impact on the market in the coming years .
- Impact of new build homes: New build homes are becoming more popular in France, due to the challenges facing the French property market. New build homes offer a more affordable option for people looking to buy homes, which will help to support the market .
In conclusion, the French property market in 2024 is facing a number of challenges, including inflation pressures, rising interest rates, and an energy crisis. However, the market is expected to remain stable, due to strong housing demand and a growing economy. To gain more insight into the French property market, consider the additional trends highlighted above.
