Real estate: since the health crisis, houses in Ile-de-France are no longer popular

Reading time:

1 minute

In the post-Covid era, property prices have soared, especially in Île-de-France, as Parisians sought to escape the capital to invest in a house with an exterior in the suburbs. But it is clear that four years later this time is over.

© TanyaJoy/Adobe Stock

– Real estate: since the health crisis, houses in the Ile-de-France region are no longer popular.

Barely four years ago, on May 7, 2020, the first incarceration due to the Covid-19 health crisis ended. Two long months that inevitably changed the lives of the French, their habits and desires. Starting with their habitat. Many people have search escape from big citiesand above all to escape from his apartment, to invest in real estate in the countryside with an exterior and why not, a pool all year round. Especially Parisians who tried to shop in the suburbs after the Covid crisis.

At the time, there was no doubt that property prices had jumped: it was the fabled law of supply and demand. In Île-de-France, property costs increased by +8.3% in two years, and even up to +10.9% in Val-d’Oise or 9.4% in Seine-et-Marne. The goods were collected and disappeared within a single day. But those days are gone. Today, Île-de-France houses are far from finding buyers quickly… or even finding buyers at all.

The rest under this ad

The rest under this ad

Also read:

Real estate: what properties are selling poorly?

Interest rates from 1% to 4% for four years

In fact, as stated Parisian, apart from Seine-Saint-Denis and Val-de-Marne, all other Île-de-France departments saw a significant drop in house prices. Even faster than flats more than one year, according to the Meilleurs Agents barometer. It was in Hauts-de-Seine that the number of homes in the region decreased the most, with -10% in one year. In other departments it is in between -5% and -6%.

A decline that can be explained by a lack of enthusiasm and, above all, by a decline in the purchasing power of real estate. Interest rates increased from 1% to 4%, reminds Thomas Lefebvre, scientific director of Meilleurs Agents and SeLoger, to our colleagues. The purchasing power of real estate has decreased. And because of the high prices, the people of Ile-de-France are more exposed than in other regions.” Also, Parisians don’t leave Paris anymore to shop in the inner suburbs like during Covid so they don’t raise prices anymore,” concludes Yann Jéhanno, President of the Laforêt Group.

Source link

Leave a Comment