–In Mulhouse, property prices jumped by more than 16% in 2020 (© SEBASTIEN BOZON / AFP)–
The year 2020 marks the revenge of intermediate-sized cities such as Orleans, Mulhouse or Limoges.
(BFM Immo) – The crisis has not curbed the desires of the French in terms of real estate. And despite the two confinements, there should be around 980,000 sales in the former in 2020 according to the National Federation of Real Estate (Fnaim), a level close to historical records. Likewise, on the price side, notaries expect to record prices still up 6.6% over one year at the end of December for apartments and 6.1% for houses in mainland France. Or an even higher rate than in 2019, where the increase was already 5.2% over one year in the fourth quarter for apartments and 2.6% for houses, according to INSEE.
But the crisis has reshuffled the cards and the priorities of the French, who now focus more on the surface and outdoor spaces. Also, among large cities with more than 100,000 inhabitants, some are showing spectacular increases. And it is no longer the big metropolises that are in the lead. According to SeLoger data (which records prices up 6.5% on average this year), it is in Mulhouse that prices per square meter have exploded the most: + 16.5% over one year in December, to reach 1,939 euros. The city benefits in particular from its proximity to Switzerland. Then come Angers (+ 16.4% to 2,889 euros), Limoges (+ 16.4%, 1,844 euros) and Orléans (+ 16.1%, 2,667 euros).
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These are therefore medium-sized cities, rather on the outskirts of very large cities, where property prices are lower and offer buyers more comfortable purchasing power. Municipalities which arouse renewed interest but where the offer remains limited.
The surge in prices is over in Bordeaux
Just below, in this ranking, we find cities generally larger in size and the first regional metropolises. Thus, prices in Montreuil climbed 12.2% over one year to 6,876 euros. Similar increases are observed in Metz (+ 12.1% to 2,391 euros), Nantes (+ 11.9% to 4,151 euros), Lyon (+ 11.8% to 5,652 euros) and Le Mans (+ 11.7% at 2,132 euros). “Following the example of the Mulhouse, Angevin, Limougeaud and Orleans markets, the Montreuillois, Metz and Nantes markets are characterized by excessive demand that a limited and non-extensible supply is unable to satisfy. However, it is precisely this scarcity of inventories of goods offered for sale which contributes to making the price of real estate soar, “said SeLoger.
Conversely, it is in Boulogne-Billancourt where prices have increased the least among towns with more than 100,000 inhabitants. The square meter rose “only” by 4.3% in 2020 to reach 9,063 euros. The surge in Bordeaux in recent years also seems to be behind us, with prices increasing by 4.4% to 5,023 euros.
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