have buyers lost real estate purchasing power?

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Like 2020, 2021 has been extremely dynamic due to the post-Covid effect. Credit rates were at that time very low and were around 1% or even less. The French then massively turned to the purchase of goods.

Last year, given general inflation and the conflict in Ukraine, mortgage rates started to rise again, making home ownership more difficult. Between 2021 and 2022, all the largest cities in France lost square meters. An even more striking drop in the real estate purchasing power of buyers if we compare 2022 to before the pandemic, that is to say with the year 2019.

This is revealed by the assessment of the real estate purchasing power of the French in the 20 largest cities in France *, carried out by the broker Meilleurtaux.

Le Mans, Saint-Étienne, Le Havre, Angers… a significant loss of real estate purchasing power

Emerging from the health crisis, these cities continued to attract buyers. The number of m2 that buyers could afford with the same monthly payment of credit then collapsed.

For example in Le Mans: between 2022 and 2021, the city lost 34 m2and between 2022 and 2019 – 41 m2. One of the reasons: with a m2 at €2,357 in 2022, compared to €1,930 in 2019, prices have increased by more than 20%.

Saint-Étienne lost 27m2 in just one year. In addition, in 2019 it was possible to acquire 159 m2, the largest average living area in France. However, if it is still the city which offers the most beautiful living space, buyers can now only buy 123 m² in 2022. Thus, in three years, the purchasing power of Saint-Etienne residents has fallen by 36 m2.

Last on the podium of cities that have lost the most real estate purchasing power in one year: Le Havre with – 22 m2. In 2021, a buyer could expect to live in a space of 99 m2while this year, he will only have to settle for 76 m2. The price of m2 went from €2,269 in December 2021 to €2,545 in December 2022.

Between 2022 and 2019, Angers is the city that loses the most m2 : i.e. 42 in total.

Paris, Lyon, Bordeaux… the metropolises seem to be doing better

Whatever the period studied, Paris, Lyon and Bordeaux lost the least m2. Paris records the lowest loss of real estate purchasing power, i.e. -2m2thus going from 19 m2 in 2021 at 17 m2 in 2022. In three years, the city has lost 3 m2.

“The prices are so high that, of course, the drop is less, but the fundable area remains 4 to 5 times smaller than medium-sized cities, underlines Maël Bernier, director of communication and spokesperson for Meilleurtaux, including those that saw their living space shrink sharply. We must put into perspective with the price per m2. In Paris, it is almost 5 times higher at Le Mans! »

Bordeaux loses 6m in one year2 and thus goes from a living area of ​​45 m2 in 2020 at 39 m2 in 2022. In three years, the city loses a total of 8 m2. “It’s ultimately quite a bit, because Bordeaux had suffered the price surge before 2020. Clearly, the worst was over,” adds Maël Bernier.

Lyon loses exactly the same area as Bordeaux, i.e. 6 m2 between December 2022 and December 2021. In three years, Lyon goes from a real estate purchasing power of 43 m2 in 2019 at 34 m2 in 2022, i.e. – 10 m2.

“The rise in credit rates in 2022 causes a real change in the matrix and the consequences spare no city. If between 2021 and 2020 real estate purchasing power has more or less stabilized within these metropolises, no doubt due to the fact that they were “a little neglected” after the Covid.

Today, in 2022, Paris Lyon and Bordeaux must absorb the increase in financing rates [taux directeurs de la Banque centrale européenne fixant le coût de l’argent pour les banques au sein de la zone euro, ndlr] “, she remarks.

Dijon, Grenoble, Strasbourg… these mid-ranking cities that are not to be outdone

The loss of real estate purchasing power is widespread. In the middle of the ranking is the city of Dijon which, in one year, has lost, certainly less than the other cities, but nevertheless 16 m2 and 19 m2 compared to 2019, i.e. a real estate purchasing power of 67 m² in 2022.

The reasons: credit rates, but also the price per m2 which has almost increased by €200 in one year. Grenoble has lost 13 m² in one year and 16 m² compared to 2019, to reach 66 m² of real estate purchasing power in 2022.

If Strasbourg shows a loss of only 9 m² in 2022 in one year, it shows on the other hand – 16 m² in 2022 compared to 2019.

* Over the period from December 2021 to December 2022 and from December 2019 to December 2022. This is the real estate purchasing power for €1,000 monthly payment over 20 years calculated with the fixed rate of 2.20% over 20 years .

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