Falling real estate prices in France: trends and forecasts.
Recently, the French real estate market has been experiencing a significant decline. According to our data, housing prices in France continue to fall, and this trend has been observed since the beginning of 2024. Experts note that the fall in prices is also accompanied by a decrease in the number of sales transactions. This indicates a deeper crisis in the real estate sector than previously thought.
Market analysts attribute this situation to several factors.
- First, the economic uncertainty caused by global events, forcing potential buyers to postpone major acquisitions.
- Secondly, the tightening of mortgage lending conditions has made buying a home less affordable for many French people.
Despite the decline in prices, which usually stimulates demand, the number of transactions in the real estate market continues to decrease. This indicates that buyers are expecting a further drop in prices and are not in a hurry to buy real estate.
The situation is causing concern among property owners and investors. Many of them fear that the value of their assets may drop significantly in the near future. Some experts suggest that the current situation may lead to long-term stagnation in the French real estate market.
The government is considering possible measures to stimulate the market, including tax incentives for first-time homebuyers and programs to support the construction sector. However, it is still unclear how effective these measures will be in the current economic conditions.
Experts predict that the real estate market in France may begin to recover not earlier than the end of 2024, provided the overall economic situation in the country and Europe as a whole improves. Until then, prices and sales volumes are expected to remain at a low level.
