In one year in Nantes, according to many notaries, the prices of the old properties jumped by more than 10%.
The real estate balance sheet for the year 2019 has been unveiled by the notaries of France and say that the prices of apartments in many major cities have soared and the million transactions mark has been exceeded.
Lucky are the owners of an old property in France. According to the Conseil Supérieur du Notariat, a body representing all French notaries, the volume of real estate transactions amounts to 1,059 million. With 2018 as the reference year, this represents an increase of 10%. Of course, this increase naturally led to a further rise in the price indices of 2.5% for houses and 4% for apartments in the third quarter.
With an increase set at 5.5%, this inflation is expected to continue in the fourth quarter of 2019 throughout the country. The pre-contracts, i.e. the promises to sell, recorded in recent weeks have served as references for the establishment of the forecasts.
According to French notaries, the number of annual sales of older properties in France has increased by 50% since 2014. The cities of Lyon and Nantes, on the other hand, have experienced a 10% increase.
The historically low credit rates have something to do with it: 1.14% according to the CSA Housing Credit Observatory. These low rates offer buyers the possibility of "supporting the rise in prices". Financing an apartment or a house has never been easier.
Outside the Paris region and from a surface area point of view, a 20-year loan allows you to afford a 154-square-metre house (with a monthly payment of 1,300 Euros) and a 56-square-metre apartment (with a monthly payment of 800 Euros). One out of every two houses sells for more than 165,000 Euros and one out of every two apartments sells for more than 125,000 Euros.
This situation has allowed certain major centres to benefit more from it. At 10.3% at 4,320 Euros per square metre, the value of a Lyon apartment has risen sharply. For the city of Nantes, the increase is 10.1% at 3,150 Euros per square metre. The city of Saint-Etienne, on the other hand, has seen an increase of 7.7% to 930 Euros per square metre. For Rennes, it is an increase of 7.6% to 2,750 Euros per square metre. Finally, for the capital of France, Paris, it is a jump of 6.3% to 9,890 Euros per square metre.
Faced with these cities, the city of Reims is experiencing a drop in the value of its apartments to -2.7% at 2,000 Euros per square metre.
With regard to houses, it is an increase of 7% for Nantes and 5% for Paris and Bordeaux.