2022 Real Estate Annual Market Report for France
Originally posted on & updated on 11th November, 2023
The Notaires de France have published their annual market report for 2022 and the trends for the start of 2023 (for residential sales only, not commercial or business real estate).
To summarise their report, 2022 will be remembered for a decline in property sales (around -5.4%) while house prices are continuing to increase with stronger sales for older/stone houses (8.2%) than for resale apartments.
Key Market NumbersHere are some of the key numbers for overseas buyers and international investors; it's worth noting the Dordogne as most popular area for foreign buyers this year, Normandy and Occitanie are on the up, Paris is back en vogue and also are the Alps with the return of winter tourism.
- 1,133,000 is the number of transactions carried out over the last 12 months (in France)
- + 8.2% is the yearly increase in the price index for old/resale properties in mainland France
- + 8% is the yearly increase properties sold to foreign buyers in the Dordogne in 2022
- + 4.0% is the yearly increase in the price index for resale apartments in mainland France
Our Professional ViewAt this stage it's difficult to forecast beyond next Spring as the global economic situation, energy, geo-political and health concerns could see sales volume drop further. Or indeed bounce back, potentially boosted by more entrepreneurs looking for a base in Europe post Brexit and/or for investors planning for the next Olympic games in Paris (JO2024).
We believe that the ongoing property shortage combined with the increase in energy, borrowing and materials costs and the lack of available finance will continue to further push prices upwards. We also think it's likely some "impulse" covid buyers may have a change of heart and cash in on their rural country retreat as families are adjusting to the cost of living crisis and professionals return to to work in cities post pandemic.