France Condominiums & Apartments Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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France Condominiums & Apartments Market Analysis
The size of France Condominiums & Apartments Market is USD 22.1 billion in the current year and is anticipated to register a CAGR of over 5% during the forecast period.
- The Apartments and Condominiums markets were impacted by the COVID-19 pandemic in several ways. On the one hand, lockdowns and the increased use of remote working practices are expected to increase the demand, and accommodative monetary policies are anticipated to improve its affordability. The economic downturn and increases in unemployment are expected to weigh negatively on demand. Due to lockdowns, most of the construction activity and property transactions came to a halt during the pandemic. In 2021, as soon as the lockdown relaxation took place, the apartment and condominiums market surged.
- The housing market in France is still strong, with the largest price increases in ten years. According to the National Institute for Statistical and Economic Studies, house prices in Metropolitan France increased by a strong 5.85% over the year to Q2 2021 (4.41% inflation-adjusted), after y-o-y growth of 5.86% in Q1, 6.4% in Q4 2020, 5.21% in Q3 and 5.64% in Q2.
- House prices in Paris have even slightly decreased, suggesting that some rural residents are moving to the city due to its high cost of living. According to the La Chambre des Notaires de Paris, the average price of existing apartments in the capital city decreased by 0.2% (-1.5% inflation-adjusted) to EUR 10,650 (USD 12,166) per sq. m. over the year leading up to Q2 2021.
- According to recent research by the University of Paris and King's College London, nearly 50% of Parisians believe that their city is too expensive, and 43% think they could live more comfortably somewhere else. There is no doubt that the epidemic has caused a shift in population toward more rural, greener places.
- Both supply and demand are now improving. In the first three quarters of 2021, France saw a 25% year-over-year rise in new housing authorizations, reaching 351,066 units, and a 13.7% increase in new housing starts, reaching 296,906 units.
- According to the General Council for the Environment and Sustainable Development, existing home sales increased by 22.6% year over year in August 2021 to an annualized 1,208,000 units after declining by 4% in 2020. According to Ministère de la Transition Écologie, new home sales increased by 29% year over year to 61,718 units in the first half of 2021 after declining by 22.8% the previous year.
France Condominiums & Apartments Market Trends
This section covers the major market trends shaping the France Condominiums & Apartments Market according to our research experts:
France's Rising Apartment Prices
French home prices increased by 150% (or 112.5% when adjusted for inflation) during the lengthy property boom that ran from 1997 to 2007. The French housing market has not changed much since then.
In 2008, the market began to deteriorate. Price increases since then have been minimal, as have price drops. In 2012-2015, home prices decreased by 1.7% annually on average before beginning to rise in 2016.
House prices rose 6.4% in 2020 despite the epidemic, the greatest growth since 2010. In France, there are no limitations on foreign ownership. Property is often freehold. The two main freehold ownership structures for apartments are co-ownership (which requires meetings of co-owners when decisions are made and accounting is kept) and volumes, which are typically designed for mixed-use complexes. There are leaseholds as well, lasting up to 99 years.
According to the La Chambre des Notaires de Paris, the average apartment price in Île-de-France, the wealthiest and most populous region of the nation, increased by 2.1% year over year (or 0.7% inflation-adjusted) to EUR 6,710 (USD 7,665) per square meter. The average price of an apartment in the Petite Couronne increased by 4.5% year over year (3% inflation adjusted) to EUR 5,390 (USD 6,157) per square meter. The average price of an apartment in the Grande Couronne climbed 4.1% year over year and 2.7% inflation adjusted to EUR 3,290 (USD 3,758) per square meter. Apartment prices in Hauts-de-Seine, one of the most populous departments in the nation, grew 4.3% year over year and 2.9% when adjusted for inflation, reaching EUR 6,590 (USD 7,528) per square meter.
Increasing sales of Apartments
According to the General Council for the Environment and Sustainable Development (CGEDD), existing home sales in France decreased by just 4% in 2020 compared to the previous year, reaching 1,024,000 units, the second-highest level ever recorded (existing home sales increased by 9.1% annually from 2015 to 2019). However, according to the Ministère de la Transition Écologie, new home sales decreased by 22.8% year over year to 101,259 units in 2020.
Existing house sales increased by 22.6% year over year in August 2021 to an annualized 1,208,000 units, indicating that demand is currently rising rapidly. Additionally, compared to the same period last year, new home sales increased significantly by 29% to 61,718 units in the first half of 2021. In the same time frame, sales of newly constructed single-family homes jumped by 19.5% to 4,036 units, while sales of new apartments increased by 29.7% to 57,682 units.
With an estimated 1.1 million sales by year's end, 2022 should approach the previous high set in 2021 in terms of transaction volume. Despite the news and the debate around the rate of sale cancellations, it appears doubtful that there will be fewer than one million sales. According to this scenario, a quarter of the pledges of sale would really be canceled before the deed of sale was finally signed by the end of the year, even though the yearly average of canceled sales is currently at its highest point, often between 2% and 3%.
France Condominiums & Apartments Industry Overview
The France condominiums and apartments market is highly fragmented with the presence of both global players and regional players and the competition in the market is very high. Some of the major players like Bouygues Batiment Ile De France, Vinci Construction France, Entreprise Generale Leon Grosse, Demathieu Bard Construction, GCC. The market is anticipated to regain normalcy by the end of 2023. Companies are gearing up to meet future needs, and many companies are entering the market for further opportunities.
France Condominiums & Apartments Market Leaders
Bouygues Batiment Ile De France
Vinci Construction France
Entreprise Generale Leon Grosse
Demathieu Bard Construction
GCC
*Disclaimer: Major Players sorted in no particular order
France Condominiums & Apartments Market News
- October 2022: Edyn, the pioneer of the hybrid extended stay and a private real estate fund of Brookfield, announced the expansion of its lifestyle aparthotel brand Locke in Paris. A historic building in the city's fifth arrondissement has been purchased, and construction is now underway on a 145-room aparthotel that will debut in 2024. This is a particularly exciting acquisition because it signals Brookfield and Goldman Sachs's continuous support and endorsement while also marking their first foray into the long-desired market. As they continue to expand throughout Europe, they look forward to opening this historic building.
- January 2022: Nexity (a major integrated real estate group) and Meridiam (a purpose company specializing in sustainable infrastructure) partnered to support local authorities in the rehabilitation of city centers in France. This partnership supports major urban projects to rehabilitate run-down housing, clean up infrastructure (buildings and housing, etc.), and conduct urban renewal operations.
France Condominiums & Apartments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Industry Value Chain Analysis
4.5 Technological Innovations in the Market
4.6 Government Regulations and Initiatives in the Industry
4.7 Insights into Rental Yields in the Segment
4.8 Insights into the Key Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))
4.9 Insights into Construction Costs
4.10 Insights into Investment
4.11 Impact of the COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By City
5.1.1 Paris
5.1.2 Lyon
5.1.3 Brodeaux
5.1.4 Marseille
5.1.5 Other Cities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Bouygues Batiment Ile De France
6.2.2 Vinci Construction France
6.2.3 Entreprise Generale Leon Grosse
6.2.4 Demathieu Bard Construction
6.2.5 GCC
6.2.6 BC.N
6.2.7 Entreprise Petit
6.2.8 DP.R
6.2.9 Fayat Batiment
6.2.10 GTM Batiment
6.2.11 Demathieu & Bard Bat Ile De France
6.2.12 Brezillon
6.2.13 Sicra Ile De France
6.2.14 Eiffage Construction Sud-Est*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
France Condominiums & Apartments Industry Segmentation
A private residence in a building or house divided into several separate dwellings is known as an apartment. A condominium (also known as a "condo") is a large property complex made up of individual units owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management. A complete background analysis of the France condominiums and apartments market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The France condominiums and apartments market is segmented by City (Paris, Lyon, Bordeaux, Marseille, and Other Cities). The report offers market size and forecasts for the France condominiums and apartments in value (USD billion) for all the above segments.
| By City | |
| Paris | |
| Lyon | |
| Brodeaux | |
| Marseille | |
| Other Cities |
France Condominiums & Apartments Market Research FAQs
What is the current France Condominiums and Apartments Market size?
The France Condominiums and Apartments Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in France Condominiums and Apartments Market?
Bouygues Batiment Ile De France, Vinci Construction France, Entreprise Generale Leon Grosse, Demathieu Bard Construction and GCC are the major companies operating in the France Condominiums and Apartments Market.
What years does this France Condominiums and Apartments Market cover?
The report covers the France Condominiums and Apartments Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the France Condominiums and Apartments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
France Condominiums and Apartments Industry Report
Statistics for the 2024 France Condominiums And Apartments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. France Condominiums And Apartments analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
