The still strong pressure on new housing prices despite the health crisis

Most of the cities affected by the increase in new home prices

For a year, the prices of new real estate, on the price of a three-room apartment, a benchmark area in real estate development, have increased almost everywhere in France. Among the 150 or so cities with at least 5 new programs on the market, 6 out of 7 cities recorded rising prices over one year. Never seen ! Only 21 localities saw their new home prices decrease in one year.

Rise well beyond inflation

The average price of a three-room apartment has therefore increased by 5,4% in one year, that is well above inflation, which INSEE announces at 0,5% for 2020. At the start of 2021, it is therefore necessary to count on average € 295 to buy a three-room apartment in new buildings in France.

"The shortage of new housing available and the sharp drop in building permits issued even before the coronavirus epidemic and which the epidemic has accentuated, not to mention the status quo imposed by the postponement of the second round of municipal elections explain this pressure on new price in 2020 », indicates Céline Coletto, spokesperson for Find-un-logement-neuf.com. In addition to these different reasons, there is also the new attraction for certain medium-sized towns.

Pressure on prices in medium-sized cities

A year after the start of the Covid crisis, after having tested teleworking on a very large scale, after several periods of confinement, the desire for a green life is strong and this seems to be confirmed by the evolution of real estate prices nine in medium-sized cities, observed by Find-un-logement-neuf.com.

Among the 10 localities recording the highest increase in new property prices for a year, we see sought-after medium-sized cities such as Reims: + 19% one hour from Paris by TGV; but also many cities of the great west: Dinard, Vannes, Arras, Brest ... "An increase which can also be explained by the end of Pinel in these cities of zone B2 where we have in a way created the shortage by slowing down the launch of new real estate programs, for lack of tax exemption system", Céline Coletto analysis.

Conversely, three large metropolises recorded a drop in prices for three-room apartments and this was among the 10 biggest drops over one year: Nice: -4,25%, Lille: -3,32% and even Paris: -3,19%. Still, the capital is still the most expensive city in France. In one of its districts, the 15th, you even have to spend an average of € 1 to acquire a 116-room apartment.

Top 5 new home prices

Among the most expensive cities in France, we also find, unsurprisingly, Issy-les-Moulineaux. On the other hand, three new localities made their entry into the Top 5 cities with the most expensive new building prices: Le Vésinet at 514 € after an annual increase of + 12 % or Clichy at 496 €, + 14 %. Divonne-les-Bains, in the French Genevois, is also part of this Top 5 with an average price of € 451 for a new three-room apartment.

Conversely, among the most affordable cities, despite prices all rising over one year, owning a three-room apartment in Liffré in the Rennes suburbs is possible from 172 €, as in Saran in north of Orleans at € 500. Other localities such as Perpignan, Tourcoing, Thionville, present in this Top 175 of the most accessible prices or even Mulhouse, despite the strongest annual price increase: + 33 %, could also be successful in this search for medium-sized cities at affordable prices.

Conclusion

Despite the health and economic crisis following the coronavirus pandemic, despite a decline in sales to individuals of 30% according to the promoters of the REIT, the prices of new real estate continued to climb in France in 2020, as the shows the data collected and analyzed by the site dedicated to new housing: Find-un-logement-neuf.com. The arrival of new municipal or metropolitan teams in many large cities has also slowed down some real estate projects. To see now if 2021 will revive the issuance of building permits and above all, at what price?

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