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The real estate purchasing power of the French in free fall since the Covid

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June 21, 2023
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Orange with 6Medias, printed on Tuesday, June 20, 2023 at 7:02 p.m.

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A examine by Meilleurtaux, relayed by Le Parisien, Tuesday June 20, signifies that the surge in charges and the relative stability of costs are hurting many inhabitants, particularly in Saint-Étienne, Nîmes and Le Mans.

The buying energy of the French is collapsing and that is worrying. Certainly, in response to a examine by Meilleurtaux, relayed within the columns of the Parisianthe flight borrowing rates coupled with relative value stability forestall many voters who would have been capable of purchase a property from embarking on such a mission.

The French have misplaced a mean of 5 m2 in 6 months within the 20 largest cities within the nation.

The calculation made by the dealer is easy: he analyzed the floor space that may be acquired in June 2023 with a month-to-month fee of 1,000 euros, at a fee of three.40% over 20 years, akin to a capability mortgage of 173,963 euros. The inhabitants most to be pitied are these of Saint-Étienne (Loire), who’ve misplaced 10 m2 in six months, the loss is 7 m2 for Nîmes (Gard) and Le Mans (Sarthe).

A troublesome fall in costs with out reducing rates of interest

“The cities the place we’re dropping probably the most actual property buying energy are cities that had been reasonably priced three years in the past and which have flamed after the confinement because of the Covid”, defined to the Parisian Maël Bernier, spokesperson for Meilleurtaux. As a result of when the well being disaster arrived, many metropolis dwellers determined to go inexperienced and depart the massive cities. Inevitably, the value per m2 has soared there. In three and a half years, it is 47 m2 misplaced in Angers, 46 m2 in Saint-Étienne. In Le Mans, the discovering is much more worrying, the loss is 41 m2 in 18 months.

In giant cities, the impact is completely the other. The value was already peaking there earlier than the Covid, so it has hardly modified, for instance, solely four m2 misplaced since January 2020 in Paris. To regain these misplaced m2, it is going to take a major drop in costs. Undecided, due to this fact, that this can occur tomorrow, with the numerous rise in charges for a yr and a half.



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