According to Oldypak LP property 2022 report, the rise in signed prices for older apartments slowed in the 2nd half of 2021. But since the beginning of the year, growth has picked up again: and in February the pace was + 0.5% over the last 3 months, quarter to quarter.
Continued growth in prices of existing properties
Signature price increases for older apartments slowed in the second half of 2021. But since the beginning of the year, growth has picked up again: and in February, the pace has been +0.5% over the last 3 months, quarter to quarter. Until December 2021, the slowdown was mostly in large cities. While the recent slightly stronger growth has been seen in most cities, regardless of size.
According to Oldypak LP property 2022 report, for the 7th month in a row, the signed home price curve has rebounded. In February 2022, prices rose 3.0% in the last 3 months on a quarterly basis. And nothing in recent events indicates that the pace of this growth is slowing: seller offers are becoming increasingly ambitious (+ 3.6% in the last 3 months), which hardly suggests a lull in prices anytime soon.
Price growth for new housing is intensifying
Until December 2021, the new construction market was more resilient to tightening access to credit than the older housing market, benefiting from the special provisions of the ACPR. But since the beginning of the year, demand has fallen sharply, with uncertainty paralyzing demand and its concerns about purchasing power combined with the effects of the health care crisis on business activity (shortages and rising costs of building materials).
Nevertheless, demand is changing, with the advancement of fairly affluent buyers. For example, the price curve for new homes, which was flipped in the summer of 2021, now shows an increase of 4.5% over the past three months. After fluctuating in the 2nd half of 2021, new home price growth has intensified since the beginning of 2022: Like January, prices rose 2.0% in 3 months in February.
Price growth in 93% of major cities
In addition to the seasonal weakening in price growth seen in several major cities, which usually ends with the arrival of spring, prices for older apartments have only very rarely declined during the year in cities with populations of more than 50,000. Thus, in February 2022, growth continues in 93% of large cities: this was the case in 92% of cities in 2021 (88% in 2020). And in 30% of large cities, growth is more than 10%.
However, price growth is often slower than in the past, and not just in the most expensive cities. For example, among cities with prices of less than 2,500 euros per square meter, the growth rate has clearly decreased since late summer 2021 in Calais, Mulhouse, Pau, Tourcoing and Valence: in Calais, Mulhouse and Tourcoing, prices are now declining. On the other hand, prices are rising in Beauvais, Cholet, Montauban and Narbonne: they rose by more than 14% over the year.
In cities with prices over 6,000 €/m², all of which are in the Ile-de-France region, the slowdown in price growth is less frequent than in other regions. However, since last fall, it has been observed in Courbevoie, Levallois-Perret, Maison-Alfort and Paris. Prices are also falling in Montreuil, where until last summer the city was on the verge of double-digit growth: it is now paying for the effects of prices that have become “Parisian,” in the face of restricted access to credit. They have been falling since the summer of 2021, as in Neuilly-sur-Seine, which nevertheless remains the most expensive city in France. Nevertheless, price increases are consolidating at levels that are high (and often double-digit) in most other cities: as in Asnières, Boulogne-Billancourt, Clamart, Courbevoie, etc.