At the beginning of 2022 the real estate market remained boosted by the post pandemic aspirations to flee the cities.
The ‘resale property market’ outside the towns and cities experienced a strong upward trend throughout the first half of the year. However, in the second half of the year, a loss of momentum began to be felt, and the rise in prices continued to subside as the months went by. In 2022 the increase in recorded prices was 4.8%, which was lower than in 2020 and 2021, according to the Insee-Notaires index. The surge in prices, accompanied by a record number of transactions observed in 2020 and 2021, therefore remained cyclical and came to a sudden halt. The arrival of 2023 has not reversed the trend with prices down nationally by 0.2% since the beginning of January, according to the site Meilleursagents.com.
The demand for new build shows a more chronic decline, which sharply accentuated in 2022. The French Building Federation (FFB) even qualified the last quarter, with its 38% regression, “worst exercise of the last sixteen years”. The FFB cites the current weak demand on “the continuous inflation of construction costs, land prices, the weakening of support systems for home ownership and rental investment, and the rapid and sudden increase in interest rates “.