France Condominiums and Apartments Market Size

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.