Property: the department where prices fell the fastest over the year

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Property prices are falling in almost all areas. Here are the departments where the price drop is the fastest.

Capital Video: Real estate: the department where prices fell the fastest in a year

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Has the fall in real estate prices gotten out of hand? In one year, housing prices fell by an average of 3.8%, according to the latest economic report of the National Real Estate Federation (Fnaim) presented on Wednesday 12 June. For the major real estate broker unions, this is a downturn rarely seen in the market. “This decrease is the largest in the last 15 years. In some municipalities, we also observe double-digit declines», describes Loïc Cantin, president of Fnaim.

Worse still, the feds even expect the price decline to accelerate between now and December. At the end of the year, Fnaim predicts an average decline of between 5 and 7% across the country. The wide spread, which is explained by the uncertainty regarding the reduction of the key rates of the European Central Bank (ECB), which will mechanically affect the development of lending rates until the end of the year. Because the federation reminds: the drop is mainly explained by the very sharp increase in real estate loan rates in 2023, which last year largely reduced the borrowing capacity of those interested in buying real estate.

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Different developments depending on the departments

As is often the case in real estate, prices do not vary at the same rate in all areas. Let’s give some examples. In the 10 largest French cities (excluding Paris), they fell by 6.1% between the end of May 2023 and the beginning of June 2024. That is, more than twice as fast as in rural municipalities (on average -2.8%), seaside resorts (-3%) or ski resorts (-2.3%). “Over the course of a year, prices fell in Paris (-7.7%) and in all major cities except Nice (+0.5%).», describes Fnaim. To take the analysis even further, Fnaim calculated department-by-department price changes. You can find the results in the table below.

Apart from Paris, the largest decreases are observed in Loire-Atlantique (-7.4%) and in Rhône (-8%). Or very urbanized departments, where housing prices in metropolises start at very high levels. “Big cities and their suburbs have taken the brunt of the rate hike», Diagnoses the federation to explain the price drops in these areas. Conversely, price developments were much calmer in Creuse (-0.7%), Finistère (-0.5%) and Alpes-Maritimes (-0.3%).

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