2022 Annual Market Report
Originally posted on & updated on 1st November, 2024
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 Numbers
Here 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
For the start of 2023, the Notaires de France report expects the sales decline to continue while the financial institutions re-adjust their lending criteria in an increasingly difficult market further to recent interest rates increases in Europe.
Our Professional View
At 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.
Planning for 2023
If you are planning to buy a property in France make sure you’ve done your homework and are set up so you’re ready to act when the right property comes along. If you haven’t already, take a tour around our buying guide, learn about property taxes, how difficult French mortgages are to obtain and how to secure a forward contract to save money on euro transfers. Last but not least, make sure that you create a member account so that we can send you regular property updates of properties match your criteria and newsletters.
One Final Note
After what we’ll describe as a rocambolesque year, we would like to wish you and your loved ones a fantastic Christmas holiday and Best Wishes for a Happy and Peaceful New Year.
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