Health and then the economic crisis, the turmoil of the international context, the economic situation continues to affect the real estate market and the desires of the French.
After a record year 2021, and if French enthusiasm for real estate is still there, they have to deal with the realities of the market: inflation, declining purchasing power, and a lack of offers. Orpi, France’s leading real estate network*, breaks down trends at the beginning of the year and takes stock of the market.
Detached house and outdoor spaces
Two years into the health crisis, between confinement, remote work and economic recovery, some trends are becoming part of the long-term real estate landscape. The detached house continues to make the French dream come true. According to a survey conducted by Orpi among its clients, one of the respondents is among two plans to buy or rent a small detached house with a garden.
The need for space continues and the numbers confirm this: outdoor space is appreciated by nearly a quarter of respondents looking for an apartment with a balcony or terrace, and 23% of future buyers looking for a family home.
A market that is still dynamic
The market maintains its momentum, with demand continuing to rise, estimated at +20% in the number of searches on Orpi.com from January to March 2022.
Among the real estate projects of the French, 65% are looking for one main and shared housing in 10 plans to embark on the acquisition of a second home.
Real estate prices soaring
Nearly 60% of respondents consider their budget to be too low compared to market prices. Nationwide, Orpi notes a 6% increase in prices per square meter at 1Verse Quarter of 2022. An increase, still suitable for large cities, which also increased in medium-sized towns, widely preferred by the French in recent months.
In Grenoble and Valence, prices per square meter increased by 17% from January to March 2022 compared to 2021, in Strasbourg by 9%, in Lyon by 4% and in Nancy by 2%.
For Guillaume Martinaud, President of the Orpi Cooperative: “Besides the increase in selling prices, which has spread throughout the territory, there is still a lack of supply. The lack of goods available in 2021 contributed to the price increase. 55% of our customers already admitted that they did not find on properties that match their search.Although the real estate market does not lose its dynamism, high prices combined with a lack of supply represent a slowdown in sales volumes in 1Verse compared to 2021.
The high prices are added to the new restrictions for banks with regard to granting loans and high credit rates. According to the broker Vousfinancer, most banks, national or regional, raised their rates in April from 0.05 points to 0.45 points for one of them.
Buyers wait and see
Consequently, the French became more vigilant: three in 10 participants admitted that they would prefer to wait until they had a greater view of the political and economic context before making a decision.
Caution, according to Orbe, may call for regulating property prices in proportion to the budgets of future buyers. Negotiation margins are also estimated at 2.69% of selling prices, a slight increase compared to the first quarter of 2021.
Orbi estimates a 17% drop in home sales over 1Verse The first quarter of 2022 compared to the same period last year. While the trend can show a slowdown in the market, it is more accurate to talk about a return to normal. We had a record year in 2021 with an 18% increase in signed settlements over the course of the year, assures Guillaume Martinaud Dorby. On the other hand, if we look at previous years, the number of sales goes back to the same dynamic. in 1Verse In the quarter of 2019, we recorded 11,038 sales and 9,688 in the same period in 2018, when we count 10,433 sales in the first months of 2022.
* In the number of points of sale