Despite inflation, price decline continues
Even though inflation has tended to calm down in recent months, with consumer prices having fallen below the 2% mark over one year at the end of August according to INSEE, the price of new real estate continues to benefit from price drops in this year 2024.
According to data from the Trouver-un-logement-neuf.com website, the average price of a three-room apartment has fallen by another 0.85% in six months. As of this fall 2024, you will therefore need to pay an average of €322.379 to buy a new three-room apartment in France, among the 117 cities with at least 5 new programs on the market on the portal. This represents approximately €2.700 less than six months ago for a T3, the reference surface area in real estate development. Prices are falling in 64 cities, compared to increases in 53 locations in France.
For Céline Coletto, spokesperson for Find-un-logement-neuf.com: "For several months now, the trend has been visibly towards a lull in the price of new apartments in France. Faced with the decline in sales, mainly due to the sharp rise in interest rates since 2022, developers have had to adapt their production to make demand solvent again. Hence these price drops."
Which cities are benefiting from the biggest price drops?
Among the sixty or so cities that have seen prices fall over the last six months, Lille has recorded the biggest correction: -16% and an average price for a 3-room apartment that has fallen below the symbolic €300.000 mark. Fréjus in the Var and Avrillé on the outskirts of Angers are the two other biggest drops in this autumn barometer: -13%.
There is also a nice lull around Montpellier where prices in Sète: - 12% and Castelnau-le-Lez: - 10% are falling sharply.
Note that Saint-Laurent-du-Var, in the Alpes-Maritimes, continues to yo-yo. After being one of the biggest increases in 2023, this locality on the Côte d'Azur is back to normal. With a drop of -11%, expect to pay €342.000 for a three-room apartment on average
Correction continues in Paris
If there is one city that is a symbol of falling prices in France, it is Paris! In six months, Parisian prices have fallen again - 12%, or almost €100.000 less for a new three-room apartment. You currently have to pay an average of €731.700 for a T3 in the capital.
Conversely, around fifty towns are recording price increases, such as Vallauris in the Alpes-Maritimes which, due to high-end programmes in Golfe Juan, is showing an increase of +32% in six months.
Also note the surge in Grenoble: +22% where the average price of a three-room apartment now exceeds €300.000.
A seaside resort in the Landes among the most expensive cities in France
Among the most expensive cities in the new construction of France, behind Paris, we are often used to finding only cities in Hauts-de-Seine. In this fall 2024, this is no longer the case. After a city in Seine-Saint-Denis in 2022, after a winter sports resort in 2023, it is the turn of the seaside resort of Capbreton to make its entry into this ranking of the most expensive cities in France. The Landes city is in fifth place in this Top 5.
Another unprecedented phenomenon: the arrival of a city from Yvelines: Saint-Germain-en-Laye in this ranking. Third place behind Puteaux for the royal city with an average price of €584.200 for a three-room apartment, up almost +6% in six months.
Among the Top 5 most affordable cities to buy new, the city of Louviers in Eure-et-Loir, takes first place at around €192.000 for a 3-room apartment on average. Tourcoing in the North, second, manages to display an average price below the threshold of €200.000 for a three-room apartment. Dax in the Landes completes the podium. Laval in Mayenne, which has been eligible for the PTZ and Pinel again since this summer, ranks fifth with prices that are still affordable at around €215.000 for a 3-room apartment.![Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com](https://batinfo.com/news/2024/09/30/il-est-encore-temps-de-profiter-de-la-baisse-des-prix-du-neuf.jpg)
Appetite for new housing returns
In a context of a continuous decline in sales for more than two years now, the appetite for new housing is nevertheless returning, according to data from the website dedicated to new real estate, Trouver-unlogement-neuf.com.
While sales to individuals have fallen by a further 22% in the first half of 2024, after falling by 37% for the whole of 2023, according to FPI figures, the need for housing is still there. As proof, traffic on the Trouver-un-logement-neuf.com portal is higher than last year. Although for the time being, this has not yet resulted in direct contact with developers and concrete reservations, demand for new housing is gradually picking up again.
The end of the price decline could therefore be near. It is high time to benefit from it; especially if you are an investor and you want to take advantage of the last window of opportunity to invest with the Pinel law which will disappear on December 31, 2024.
For Céline Coletto, spokesperson for Find-un-logement-neuf.com: "It's a matter of a few weeks to finalize a final Pinel investment. You will have to have signed the sale at the notary before the end of the year; but this seems to be the last opportunity to reduce your taxes while building up a real estate portfolio."
The opportunities of the new
In addition to this downward trend in sale prices, there are also numerous commercial offers and discounts. Indeed, given the context of historically low sales levels, developers are increasing commercial operations to sell off the backlog of programs or to boost commercial launches.
This is why the portal's Les Opportunités du Neuf section is always full. Vinci Immobilier is promising an exceptional 6% discount on a wide selection of new homes throughout France. Marignan is offering up to €60.000 in discounts and brokerage fees waived on certain transactions. In addition to its Cogedim Access range, the developer is offering notary fees on certain new developments until the end of October. At Eiffage Immobilier, the discount goes up to €15.000, with notary fees and additional parking offered. For investors, Bouygues Immobilier is offering notary fees and furniture in managed residences. Nexity is aiming to attract young first-time buyers with a new 0% loan.
For Céline Coletto from Trouver-unlogement-neuf.com: "Given the new regulatory requirements with the approach of the 2025 threshold of the RE 2020 environmental regulation which will concern the collective more than the individual, with the recovery signals recorded since this summer, we can imagine that the fall in prices will quickly end. There is therefore a window of opportunity to take advantage of it and it is now."
Conclusion
With falling prices and attractive offers, alongside a drop in interest rates, the new real estate market is giving hope to future owners. While the trend seems to be stabilizing, it seems essential to seize these opportunities before they disappear. There is currently a unique opportunity to realize real estate projects before the dynamics shift. The time for action is now!
The strongest changes in the price of new vehicles in France in six months![Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com](https://batinfo.com/news/2024/09/30/il-est-encore-temps-de-profiter-de-la-baisse-des-prix-du-neuf_1.jpg)
![Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com Average price of a three-room apartment calculated on 24/09/2024 among locations with at least 5 new programs on the market © Trouver-un-logementneuf.com](https://batinfo.com/news/2024/09/30/il-est-encore-temps-de-profiter-de-la-baisse-des-prix-du-neuf_2.jpg)
Consult here the price of new real estate city by city
Methodology : a real-time calculation method The current average price of new real estate in France was calculated on Tuesday, September 24, 2024 for a new three-room apartment, according to the prices indicated each day by advertisers on the Trouverun-logement-neuf.com website: on a minimum basis of 5 different new real estate programs for each location, i.e. several dozen new housing prices compared.
Illustrative image of the article via Depositphotos.com.