2019 French Property Market Records

The records set by the French property market in 2019 were numerous. The year was particularly dynamic with an increase in sales and prices throughout France. The one million sales threshold was thus crossed in the hexagon!

Prices rising unevenly

In terms of prices, 2019 followed the trend established in previous years. 2018 saw a 3.5% increase in property prices and, not surprisingly, the upward trend continued with a 4.5% increase, bringing the average price per m² to €3,384 in France. It is important to note that the house market was most affected by this phenomenon with a 5.4% increase compared to only 3.9% for apartments. This increase was particularly visible in major cities such as Lyon, where an 11.3% increase was observed, or Nantes with 9.6%.

However, the rise is far from evenly distributed across France. In cities such as Bordeaux, for example, prices are stagnating with an increase of only 0.5% (compared to 11% the previous year), or even Nice where prices actually fell by 2.1% compared to 2018.

Record sales volume

In terms of sales volumes, this year was historic. The one million transaction threshold was finally exceeded in 2019, a result previously unknown on the market. Sales thus increased by 10% compared to 2018, an impressive growth rate compared to that of 2018, which was -5.8%. This surprising increase can be explained by a remarkable decrease in property interest rates during the year. Indeed, over 40% of banks now offer 20-year rates below 1.1%, whereas in March only 5% of banks were below this threshold. To learn more, we invite you to read this article by MySweet’Immo.

2020 forecasts

2020 promises to be an interesting year for the market. Although experts disagree on the forecasts to be made, the vast majority agree that the pace of price increases should slow down. Indeed, this increase in 2019 can be explained by euphoria in the major cities concerned, due to the strong increase in volumes. We can probably expect more reasonable growth of around 2.5-3% in 2020.

Sales volumes should remain above one million transactions for the year, though with less impressive growth than in 2019. But there are no signs of a decrease. Indeed, with interest rates continuing to fall, demand should continue to increase.

Thus, the records set by the property market in 2019 announce a dynamic year for 2020 for buyers and sellers, marking a good start to this new decade. For more details, here is an article on 2020 property market forecasts by Immobilier Danger.