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Baino Estates LLC team assessing the French realty market's limits

·2 mins

In the second quarter of 2023, the prices in the French secondary real estate market saw a year-on-year increase of 6.8%, compared to the same period in the previous year. According to Baino Estates LLC analysts, apartment prices rose by 4.5%, while house prices increased by 8.4%.

General Dynamics #

In the Île-de-France region, housing prices experienced a rise of 2.2%. The price increase for apartments was modest at 0.7%, but house prices saw a more significant increase of 5.4%. This trend of faster growth in the villa segment has been noticeable in the region since the fourth quarter of 2020. However, in the historical center of Paris, apartment prices decreased by 0.8% over the year. In the surrounding areas of Paris (Petit Paris), prices rose by 1.2%, and in Greater Paris, the increase was 4.1%. Today, a villa in Petit Paris costs 4.5% more than it did a year ago, and in Greater Paris, the increase is 5.8%.

In the French provinces, there has been a continued rapid growth in residential real estate prices, with an overall increase of 8.6% over the year. Apartment prices have risen by 7.6%, and house prices by 9.0%.

Regional Markets #

The three primary local markets in France, outside the capital region, are Auvergne-Rhone-Alpes, Hauts-de-France, and Provence-Alpes-Côte d’Azur. In these areas, the annual increase in real estate prices on the secondary market has been 7.9%, 6.4%, and 8.2%, respectively. Apartment prices in the Auvergne-Rhone-Alpes region have increased by 6.1% over the year, while in Lyon, the regional administrative center, prices remained the same. In Hauts-de-France and Provence-Alpes-Côte d’Azur, house prices increased by 7.4%. In Lille, the capital of Hauts-de-France, the price dynamics were similar, and in Marseille, the capital of Provence-Alpes-Côte d’Azur, there was a notable growth of 10%.

Villa prices in Auvergne-Rhone-Alpes increased by 9.4% (the same as in Lyon), in Hauts-de-France by 6.2% (5.8% in Lille), and in Provence-Alpes-Côte d’Azur by 8.9% (matching Marseille’s rate).

The report also provides specific data for apartments, based on the size of the population in the area. In areas with over 10,000 residents, the price increase was 7.3%, while in smaller towns and rural areas, it was 9.8%. There are no comparable statistics for houses.

Despite these increases in prices, the number of property transactions in France decreased in the second quarter. Investors, considering the risks, believe that the French real estate market is approaching its growth ceiling. At present, the market mainly attracts established investors.

Public Relations:

  • Greg Hamilton
  • 1000 Parkwood Circle Cumberland, Suite 900, Atlanta, GA, 30339