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The real estate market on the rise for 2021?

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Has the real estate market finished offering us ideal conditions to access property? Since 2020, the data seems to show a situation at the lowest, advantageous for all investors. Especially since with the lockdowns related to the pandemic, moving for more space became a popular solution. But this ideal situation seems to be over, in the face of the observed increase in prices per m² in 10 of the largest French cities, outside Paris. A contrasting increase, but very present, which marks the announced tightening of the conditions of purchase… And the already predictable situation of the real estate market.

A real estate market victim of its success

With the more than optimal conditions to buy a property, as a first-time buyer or not… French households have embarked on these steps following the first lockdown. The opportunity to make an investment in a favorable real estate market, especially in large cities. However, the situation has changed between the end of 2020 and the summer of 2021.

Prices have resumed their growth, and this increase is not anecdotal: 6.15% on average throughout France. However, it is not equal for all municipalities. When we look at the detail, metropolis by metropolis… It is clear that some are experiencing a much more marked increase than others. Thus, metropolises such as Marseille, Nice, Montpellier, Strasbourg, Lille or Rennes are experiencing record increases.

On the other hand, Bordeaux, Toulouse, Lyon and Nantes are facing a much more contained increase in real estate market prices. Indeed, these metropolises already have a particularly high real estate market, which tends to slow down the purchase for a larger home. Buyers are therefore abandoning these cities, already known for their high prices, to turn to more accessible metropolises.

This has the direct effect of skyrocketing property prices in these cities. Thus, Marseille and Strasbourg recorded the largest increases between December 2020 and July 2021: +9.05%. A rate that is enough to make you dizzy, when you know how stable real estate prices have remained for a year!

At issue: the climate that attracts investors, mostly Ile-de-France, in pleasant cities or that present interesting opportunities. The infrastructure also attracts real estate purchases, as was the case for Bordeaux after the implementation of the LGV linking Paris in just 2 hours.

French metropolises are not experiencing an equal increase.

Bordeaux, a city shunned by investors?

Bordeaux has often been compared to Paris. A city with professional opportunities, attracting entrepreneurs for its ideal living environment… But now, the metropolis is associated with Paris… For its prices. Indeed, for several years now, the prices of the Bordeaux real estate market have been rising inexorably. The increase in demand and interest in the city, but also the strong development of its infrastructure makes it a very attractive metropolis.

However, this time, the rise in prices will have been only limited, compared to others. 4.29%, i.e. a change in the price per square meter of 4902 € in December 2020… At 5113€ per square meter in July 2021. The increase is present, but much more contained than for the metropolises of Marseille and Strasbourg.

Is the real estate market saturated? Or are prices already so high that investors are turning to other horizons to become homeowners? The city is building and rehabilitating dilapidated neighborhoods to build the Bordeaux of tomorrow. A fierce desire to launch a large-scale ecological and energy transition, driven by corporatereal estate … But also some residential programs. However, demand is facing a more limited supply. You have to build, and it takes time.

If we compare the French metropolises in terms of price per square meter, Bordeaux climbs to the third step of the podium. It is second only to Lyon, with its €5848 per m², and Nice, accessible from €5429 per m². Figures revealing an attraction for these cities, for their living environment and their dynamism. The Toulouse metropolis is the one that records the smallest increase: 2.38%. This does not prevent him from offering the m² at 3751 € … But to remain still among the most affordable metropolises in France.

Sources:

Real estate prices: an uneven rise in prices for the 10 main French cities

(excluding Paris). Published by Realadvisor on July 29, 2021

2021: Discover real estate prices by district in Bordeaux Lalanne Immo

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