Real Estate: Fall in value of older housing, especially in Ile-de-France

INSEE suggests that the prices of older properties will fall by 4% in 2023.

This decline in older housing prices is particularly true in Ile-de-France, where prices are highest.

This decline is expected to continue in the coming months as well.

It’s a downfall in the real estate market. According to the benchmark index published this Thursday, February 29, older housing prices fell 4% in 2023. Due to significantly more difficult access to credit, the decline is all the more stunning as it comes after a three-year boom following the Covid-19 health crisis.

Decline especially in tight markets

According to provisional data adjusted for seasonal variations, the decline in prices concerns both apartments (-4.1%) and houses (-3.8%). That should continue in the coming months, according to the Notary of Greater Paris. “In many areas of Île-de-France, prices are expected to fall by around 8% year-on-year in April”.They specifically estimate that in their 2023 report.

It is also in Ile-de-France, the region where prices are the highest, that it is the most marked with a decrease of 6.9%. According to the INSEE study, the prices of apartments (-6.9%) and houses in Ile-de-France (-6.8%) are falling at the same rate, and -7.5% compared to Paris (-6.8%) and Nantes (-6.8%). and outer suburbs (-6.2%).

“Where markets made the most progress, particularly Paris and the top ten major cities, this is where the decline is most pronounced”, adds Loïc Cantin, President of the National Real Estate Federation (Fnaim). This is also evidenced by Lyon, where apartments lost 9.3% in a year despite the market being known to be very tight.

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At the same time, the number of transactions continues to decline. At the end of December 2023, the number of transactions conducted in the last twelve months is estimated to be 869,000, after 1,115,000 at the end of December 2022 and 1,176,000 at the end of December 2021. This represents a decline of 26% in two years. . A share of sales “Now lower than early 2000s levels before the 2008 financial crisis”

Notes INSEE.