Real estate prices: how many m2 have you lost in large cities?

The loss of real estate purchasing power, in old real estate, is impressive in the space of just one year. With an equivalent budget, a buyer or borrower has lost 4 m2 in one year for an apartment and 8 m2 for a house. Over 5 years, the loss is respectively 19 and 24 m2.

2021, a record year. On the one hand on the number of sales: the notaries thus identified 1,198,000 real estate transactions in France over a period of 12 months, at the end of October, an increase of 14.5% compared to the same period in 2019. Dizzying increase in prices on the other hand: "We have noticed that prices are increasing faster in the provinces than in Ile-de-France", explained Frédéric Violeau, notary in charge of national real estate statistics, during a presentation to the press of the sector's annual report.

Over one year, apartment prices rose by 5.2% and those of houses by 9%, at the end of the 3rd quarter of 2021. Notaries' forecasts, based on current acquisition files, confirm these trends. At the end of January 2022, for apartments, “annual changes would be +1% for Île-de-France and between +8% and +9% for the province and (+5% approximately for metropolitan France) ". For houses, notaries anticipate an increase of 10% to 11% over one year at the end of January 2022 in the provinces and +8% in Ile-de-France.

Houses: 9 m2 lost in 1 year in Rennes

In order to make the evolution of prices even more concrete, the notaries carried out real estate purchasing power projections, based on a constant budget (monthly loan payments of 800 euros over 20 years for apartments and 1,300 euros for houses, without contribution).

For this budget, for a house, the Superior Council of Notaries estimates that you can buy an average house of 140 m2, or 8 m2 less in just one year. Over 5 years the loss of purchasing power is 24 m2. On the other hand, over 10 years you have gained 15 m2, above all thanks to the lowest mortgage rate.

Source: Real estate databases of Notaries of France, for old houses (excluding new buildings) CSN calculation parameters: insurance rate at 0.36% without contribution, credit rate at 1.30% for 2020 and 1.13 % for 2021

Over 5 years, the greatest losses in purchasing power are in Nantes (-23 m2), Saint-Etienne (-25 m2), Bordeaux (-22 m2), Lyon (-21 m2) and Rennes (-20 m2 ).

Real estate credit: what income to buy a house 15 km from a big city?

Apartments: 12 m2 lost in Saint-Etienne

For apartments, with monthly loan payments of 800 euros over 20 years (without contribution), notaries estimate that you can buy a property of 50 m2 on average, or 4 m2 less in one year. Over 5 years the loss of purchasing power climbs to 19 m2 but it is reduced to 3 m2 over a decade, the rise in prices being offset by the current low rates.

Source: Real estate databases of Notaries of France, for old apartments (excluding new buildings) CSN calculation parameters: insurance rate at 0.36% without contribution, credit rate at 1.30% for 2020 and 1.13 % for 2021

Over 5 years, for apartments, the greatest losses in purchasing power are again Nantes (-18 m2), Saint-Etienne (-23 m2), Lyon (-14 m2) and Rennes (-19 m2).

The home loan rate barometer, updated monthly