The decline in sales in new real estate continues in the third quarter confirming the fears of the sector

As feared by the housing division of the French Building Federation last October, the decline in new property sales continues. In the third quarter of 2022, 20.400 new homes were reserved by individuals (stage prior to the sales contract, editor's note), i.e. 16,8% less than in the third quarter of 2021, a year of "catching up" after the confinements of 2020.

The fall in reservations is more marked for individual houses (-26,4%) than for collective apartments (-16,2%).

New home sales for individuals, numbering 21.400 for the third quarter of 2022, also continued to decline with 9,8% less than in the third quarter of 2021.

On the other hand, the average price of new apartments sold continues to increase, with an increase of 6,4% and an average price of 4.700 euros per m2. It increases more slightly (+1,7%) for houses, sold for an average of 340.500 euros.

A total of 17,5% of reservations ended in cancellation by buyers, a share down from 1,5%, notes the ministry.

Trends in the demand for and supply of new housing vary from region to region. The most rural areas are experiencing a strong increase in the number of new homes marketed (+87,7% compared to the third quarter of 2021), for the second consecutive quarter, even if these are low volumes, the market being concentrated on tense areas and large agglomerations.

In tense areas, which include Paris, a large part of Île-de-France, the Côte d'Azur and the border area with Switzerland, sales and reservations are on the other hand down sharply, as well than in cities with more than 250.000 inhabitants.

It should be noted that only the Centre-Val de Loire region recorded a 17,7% increase in both reservations and sales. This can be explained in particular by the marketing of several real estate programs of more than 100 housing units in the 3rd quarter.