The French property market is expected to cool down in 2023, but it will remain strong overall. The main drivers of this slowdown are rising interest rates, inflation, and a shortage of houses for sale.
Rising interest rates
The Bank of France has raised interest rates several times in 2022 in an effort to combat inflation. This is expected to continue in 2023, which will make it more expensive for people to borrow money to buy a house.
Inflation
Inflation is also expected to remain high in 2023, which will put pressure on household budgets. This could make it more difficult for people to afford a mortgage or other housing costs.
Shortage of houses for sale
The supply of houses for sale is also expected to remain tight in 2023. This is because there has been a surge in demand for housing in recent years, particularly from people moving out of cities.
Despite these challenges, the French property market is still expected to remain strong in 2023. This is because France is a desirable place to live, with a strong economy and a stable political environment.
Here are some predictions for the French property market in 2023:
- The rate of house sales will fall below 1 million by the end of the year.
- House prices will continue to rise, but at a slower pace.
- The demand for housing in rural areas will remain strong.
- The supply of houses for sale will remain tight.
Overall, the French property market is expected to experience a soft landing in 2023. This means that the market will cool down, but it will not crash. The market is still expected to be strong, and there will still be opportunities for buyers and sellers.
If you are thinking of buying a property in France in 2023, it is important to be aware of the challenges that the market is facing. However, if you are patient and do your research, you should still be able to find a good deal.
