What is the recovery of the real estate market in Paris after Covid?

An upheaval in buyer behavior

The Covid crisis has highlighted new real estate behaviors with trips to smaller municipalities. However, we cannot talk aboutUrban exodus : the trend observed is mainly due to a part of the population that can take advantage of the democratization of teleworking to move away from their professional place. The majority of the French population remains attracted to cities. However, these movements towards smaller municipalities should not be overlooked: these are cities where the land pressure is less strong and which attract households that do not have the capacity to acquire a property in large urban centers. This trend echoes the opportunity offered by low credit rates. This increased mobility can help explain the price collapse On the Real estate market in Paris.

Historic volumes and a dynamic recovery

Since the end of the first lockdown period and the establishment of economic and social shock absorbers by the government, the French have once again been in a position to make their Project of Buying real estate In Paris. Many households had put their research on hold during Covid, searches that they have been relaunching since the end of August 2021. In fact, the volume of transactions in old housing accumulated over the last 12 months exceeds the record volume of the previous month with 1,208,000 transactions. We are therefore witnessing a strong fluidity of the market with transaction levels that have been historically high since the end of summer.

Stable prices for old homes in Île-de-France

Les Prices of old housing in Île-de-France were almost stable in the second quarter of 2021 with an increase of only +0.1% compared to the first quarter of the year. There is a slowdown in the rise in prices between 2020 and 2021 for houses such as apartments. Fact that had not happened since 2016: the Annual rise in house prices in Île-de-France is more pronounced than that of the apartments. Indeed, apartment prices fell for the second consecutive quarter in Paris with a decrease of 0.6% between the 1st and 2nd quarters of 2021. However, stability over one year (-0.2%) is observed for Prices of Parisian apartments.

Tighter credit conditions that are always advantageous

The High Council for Financial Stability (HCSf) has tightened the criteria for obtaining real estate loans by a decision of September 14, 2021. The measures are not only recommended, but must be applicable from 1 January 2022. La Standardization of grant conditions has the objective of secure the real estate loan And ofavoid over-indebtedness without, however, impeding access to credit. However, it should be noted that some first-time buyers will be penalized by these tightened conditions.

Recovery of the real estate market in Paris after Covid: a trend towards stabilization

The Real estate market in Paris maintains a stable pace: in fact, the health crisis has nevertheless comforted many potential buyers with regard to their acquisition project while refocusing them on essential needs (which are transformed into specific real estate criteria). This is what can explain the Strong resistance in the Parisian real estate market. However, we must remain attentive in the coming months: even if low credit rates and collective enthusiasm suggest a uptrend by the end of the year, the real estate market could resume the pace observed before the crisis.

The Real estate market in Paris is therefore stable for the moment, with a good stock of goods not sold during the crisis. With the resumption of purchase projects and low loan rates, it is a Good time to buy in Paris. Do you want to be advised in this project? Contact us at Parlez-moi de Paris : our real estate hunters specialized in Paris market will be happy to answer your questions!