Despite the crisis, prices of new apartments remain high in France, due to incompressible costs. However, this average conceals significant differences between regions.
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– Today, it costs you on average 314,147 euros to buy a new three-room apartment, according to FPI data.
The rates of creditWith real estate prices starting to decline again at the beginning of September, you have decided to make your purchase project a reality. Especially since, sales drop oblige, housing prices are also decreasing, you rejoice. Be careful, this is true in the old, but much less in the nine. While the prices of old housing showed a decline of almost 4% over one year at the end of June, according to the National Real Estate Federation (Fnaim), those of new housing decreased by only 1.1% in the second quarter of 2024, to remain at the high level of 5,000 euros per square meter, retorts the Federation of Real Estate Developers (FPI). The fault of incompressible costs in new construction, such as land, new construction standards, architect fees, or even raw materials, which developers are forced to pass on to the sale prices.
Today, it costs you on average 228,030 euros to buy a new two-room apartment, 314,147 euros for a three-room apartment and 426,840 euros for a four-room apartment. Price changes in the second quarter “however, they mask significant local disparities”qualifies the FPI. France is in fact divided into three, with a first third of regions where prices are stagnating: this is the case of the Grand Est (0%), Toulouse-Occitanie (+1%) and Brittany (-1%). The second third is made up of regions where prices…are rising, and not just a little: by 3% in the Pays de la Loire, Aquitaine and Normandy, and by 10% in Provence. After two years of a real estate crisis that led to a plunge in building permit, “In some places there is now so little supply that the prices of the few available homes are soaring”recently explained to Capital Pascal Boulanger, President of the FPI
New real estate: why prices remain very high despite the crisis
Significant price disparities
In the last third of regions, on the other hand, prices are falling significantly, by 3% in the Alps and Savoie, by 4% in Centre Val de Loire, in Occitanie-Méditerranée and in the urban area of Lyon, by 5% on the Côte d’Azur and in Ile-de-France, and even by 6% in Auvergne. All places where they had risen significantly in recent years.
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Find the details of the changes in these prices city by city in our table above. And keep in mind that these are catalog prices. In the current context of real estate crisis, some developers do not hesitate to make promotional offers, for example with discounts of a few thousand euros on the main rooms of the apartment, or with notary fees reduced to zero. So watch out for the launches and the end of real estate programs…
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