Baptiste Morin, edited by Gauthier Delomez / Photo: Pexels/RODNAE Productions
8:03 AM, November 20, 2023
Europe 1 this Monday reveals the result of a study carried out by the specialist site Meilleurs Agents. From January 2022, the real estate purchasing power of French households decreased by two rooms on average. The rise in rates and the crisis in the real estate market make it possible to concretely grasp the reality of the situation.
Interest rates have almost quadrupled since January 2022. As a result, the number of loans granted has halved and the decrease in the borrowing capacity of the French for a real estate project leads to a very significant decrease in the available area. “If we look at the development of interest rates, from January 2022, with a monthly payment of 1,000 euros per month, the borrowing capacity has decreased by 50,000 euros,” Alexandra Verlhiac, a PhD economist at Best Agents, detailed exclusively for Europe 1.
“On average, in the 200 largest cities of France, the French lost 20 m2 of purchasing power, which is the equivalent of two rooms, that’s significant!”, adds the specialist.
In some cities, up to 50 m2 will be lost
20 m2 is an average that hides the differences. In Paris and the Paris region, the loss of area is less significant as the price per square meter remains high. In large cities in France, such as Bordeaux or Lyon, the dynamic decline in prices limits the loss of square meters.
And then, on the other hand, in other areas, the situation is worsened by continued price increases even today. In Charleville-Mézières, Saint-Étienne and Châteauroux, households lost up to 50 m2 of purchasing power.