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The real estate market in the Paris region is experiencing some turmoil due to the uncertain economic context, high inflation and rising borrowing rates. Despite the overall decline of 2% in real estate prices over twelve months according to the statistics of a specialist in this field, residents of Paris and residents of Ile-de-France are struggling to borrow and get their projects done.
Low credit activity in the first half
Unlike other major French cities where the trend is upward, property prices in Paris have fallen by 2% over the course of one year, with a square meter now approaching €10,000 last May. Real estate is doing very well in the majority of Ile-de-France regions except for Hauts-de-Seine (92) where the price is slowing down by 1.4% over the same period. The most significant increases were observed in Val-d’Oise (+6.3%) and Seine-et-Marne (+4.9%).
ImportantDespite high demand and low prices, credit volume collapsed by 5.6% in the country in the first half of the year,
According to data from Observatoire Crédit Logement / CSA. The increase in interest rates also undermines the ability of most households to borrow, so the number of loans granted decreased by 7.3% over twelve months.
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Possible rise in interest rates in the second half
In the second half of 2022, the real estate market could develop differently. Prices should continue to rise in the Paris region due to the Greater Paris project.
Important However, the trend will be downward in the capital due to the increasing desire of Parisians to acquire spacious real estate in the suburbs.
If rates rise to 3%, as François Villeroy de Gallo, Governor of the Bank of France, believes, credit activity will slow significantly.
It seems like a good time to buy in capital before prices go up again.
The same is true for those who want to invest in the Ile-de-France region, in particular to take advantage of rates that are still relatively low.
Anyway, to make a good deal by investing in stone, it is best accompanied by an extension real estate broker.