Property prices in France have seen a significant decline of 7-8% year-on-year in the first six months of 2024, according to The Connexion. The decline has revived the market after a lull in which estate agents struggled to sell properties and buyers struggled to secure mortgages.
Transactions nationwide fell by almost 22% in 2023 (to just over 875,000 units) due to high mortgage interest rates. They stood at 1% for the 20 years to 2021 and peaked at 4.4% at the end of 2023.
However, interest rates have now dropped to 3.7%, making it easier for buyers to secure a loan and encouraging many to return to the market. This has led to a buyer's market, with sellers forced to make concessions during negotiations.
The biggest price falls are in two main categories of property: detached houses with gardens, which have risen sharply in price during the COVID-19 pandemic, and houses in need of significant repair and with a low energy efficiency rating (F or G). The latter category of property cannot be rented out from 1 January 2025 (F) and 1 January 2028 (G).
