FRANCE’S RESIDENTIAL REAL ESTATE MARKET GROWTH TRENDS COVID-19 IMPACT AND FORECAST (2022 – 2027)

During the projection period, France’s residential real estate market is predicted to grow at a CAGR of more than 5.63 percent. The COVID-19 epidemic had an influence on the French residential real estate market. Furthermore, the market witnessed delays and postponements in buying or selling a house in France.

 

Despite the epidemic, the French home market remained robust, with the greatest price increases in a decade. Metropolitan France had a significant 5.85 percent increase in home prices in 2021 compared to 2020 Q1, according to the National Institute for Statistical and Economic Studies (INSEE), followed by Île-de-France, Petite Couronne, Grande Couronne, and Hauts-de-Seine.

 

Furthermore, new house marketing grew dramatically in 2021 but remained below pre-crisis levels. According to the Ministry of Housing, the market in several places (particularly Paris, the Côte d’Azur, and the Swiss border) is failing. More than 104,447 housing units were listed for sale in 2021, compared to 21% in 2020 and 8.8 percent in 2019.

 

Meanwhile, the public sector plays an important role in the development of the French housing market by implementing various plans, such as the French Housing Policy, the government’s housing policy. These policies are aimed at balancing housing supply and demand, developing better and cheaper housing units, addressing the requirements of every individual, safeguarding the most vulnerable, and enhancing French residents’ living standards.

 

The Report’s Scope

Residential real estate refers to properties that are only intended for human habitation. The study contains vital information about the French residential real estate market. It encompasses technology breakthroughs, trends, and government activities in this area, as well as a focus on market dynamics. The competitive landscape of the industry is also depicted via the profiles of prominent competitors. The market is divided into property types. The study provides market size and forecast in value (USD billion) for each of the aforementioned segments.

 

Trends in the Market

Sales of detached homes are increasing in value.

Reservations for single-family houses increased by more than 18.9 percent in Q2 2021 when compared to the same quarter in 2020. Despite the housing market disruption caused by the pandemic, detached home sales increased in 2021 compared to 2020. The sales are on their way back to pre-pandemic levels.

 

Furthermore, as compared to flats, the comeback in detached house sales accounted for a growth rate of more than 48 percent between Q1 2021 and Q2 2021. Meanwhile, according to a poll performed by France’s housing ministry, 75 percent of French citizens want to live in a detached house with a garden.

 

The average price of detached homes each batch is likewise rising rapidly. With a 7.6 percent growth rate, the sales price reached more than EUR 330,500 in Q2 2021.

 

Increasing Housing Unit Demand and Supply in B2 and C Zones

France’s housing supply is divided into four zones: A bis (Ile-de-France, Côte d’Azur, and the border area with Switzerland), B1 (conurbations with over 250,000 residents), B2 (municipalities with over 50,000 inhabitants), and C. (rest of the territory).

 

The B2 zone is seeing more than a 12% increase in sales and a 14% increase in housing unit reservations. In 2021, demand in this zone grew by 40.8 percent compared to 2020, while supply climbed by 23.7 percent. The C zone accounts for only 5% of all real estate development. In addition, it witnessed substantial demand increase of 54% and supply growth of 87.8% in Q2 2021 compared to the previous year.

 

Sales of detached dwelling units support rising demand and supply in the B2 and C zones. Meanwhile, apartment sales and reservations are increasing in the B1 zone.

 

In addition, to fulfil consumer demand, more than 17,760 outstanding housing units (including detached houses and flats) were provided in Q1 2021 from the B2 and C zones.

Competitive Environment

Local and multinational firms compete in the French residential real estate market. The market is dominated by a few firms. Nexity, Bouygues Immobilier, Groupe Pichet, and Icade are some of the market’s major companies. Some foreign players, such as BNP Paribas Real Estate and LinkCity, are also present in the country. Because of rising internet penetration, increasing demand, increased personal disposable incomes, a surging middle-class youth population, and opportunities for government infrastructure investments, the proportion of residential real estate properties sold through the online market has consistently increased.

 

Recent Happenings

Nexity (a significant integrated real estate corporation) and Meridiam (a purpose company focusing in sustainable infrastructure) collaborated in January 2022 to assist local governments in the renovation of city centres in France. This collaboration funds big urban projects that repair run-down housing, clean up infrastructure (buildings and homes, for example), and carry out urban renewal activities.

Fnac Darty (Europe’s largest omnichannel player) and Nexity (a significant integrated real estate business) formed a commercial cooperation in June 2021 to address the demands of their consumers by combining their respective skills and shared ideals of closeness, service quality, and accessibility. Sell Property Quickly in France.

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