French property prices: indexes and maps

Variation in price indices in the 2nd quarter of 2020

In mainland France, the price changes seen in Q2 2020 continued until October 2020 at a faster pace for the apartment market (+2.1% versus +1.8% in Q2 2020) and even more so in the house market (+2.6% versus +1.4% in Q2 2020).

French property market report october 2020 pre contract trends

In Greater Paris, early indicators from Notaires du Grand Paris pre-contracts, the majority of which were signed after the confinement (May-July 2020), point to an overall continuation – or even sharpening – of the upward trend by October, with new developments by market segment and geographical area. There is expected to be an annual increase of 6.6% in Paris, which would set the price per m² at € 10,860. Nonetheless, the rise in prices would be for both apartments and houses in inner suburbs, which could come close to 9%. Lastly, the greater Paris region is expected to see price increases close to, or higher than, the Capital (+ 6.1% for apartments and +7.6% for houses).

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In the provinces, the projections based on pre-contracts point to a further rise in prices, with an even more bullish trend for houses. In late October 2020, quarterly developments are expected to range from +1.5% for apartments and +2.5% for houses. The housing sector is to remain unscathed thanks to a market of users. To take the example of Paris, while the number of offer requests has undoubtedly declined, falling from ten to five buyers per seller, there is still a market shortage. Sellers’ psychology has changed, as they now have fewer expectations and are less demanding. Real estate is, more than ever, a safe haven. This has proven to be the case yet again, even in these uncertain times. It is extremely resilient.


Median price per sq.m. for older apartments in the 2nd quarter of 2020

Median selling price of older houses in the 2nd quarter of 2020

Loans - Banque de France figures

Home lending rose by 5.3% year on year

Outstanding housing loans to individuals rose by 4.7 billion euros – an increase comparable to the average monthly variation for the last three years (4.8 billion). This rise is similar to that seen in August 2019 (+4.9 billion); as such the annual growth of loans remained relatively stable (+5.3% in August 2020 after +5.4% in July). Monthly home lending – excluding renegotiations (and external repurchases) – amounted to 16.4 billion euros in August 2020, up from July (14.1 billion). Renegotiations continued to fall, at a 15.2% portion of new lending (after 20.5% in July).

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Rates of new home lending (of all terms)

The annual growth rate of consumer lending is up (+1.1% in August, after +0.7% in July). In total , the annual growth rate of personal loans remained almost stable (+4.7% in August after +4.8% in July). The interest rate on new housing loans (including renegotiations) rose by 2 basis points to 1.31% in August, and that excluding renegotiations rose by 3 basis points to 1.30%.

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Consult the french property market report in interactive version

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