This is the first decline since 2015. While inflation strangles households and interest rates soar, the prices of old real estate fell by 0.2% in the 1st quarter, according to the Notaires-INSEE index. Over one year, prices increased by 2.7%, a sharp deceleration compared to the end of 2022 (4.6%), driven in particular by houses.

These continue to grow faster than apartments (+3.1% versus +2.2%), as has been the case since 2020, but the gap is closing rapidly compared to previous quarters. Moreover, in the first quarter of 2023 alone, the trend was reversed: the price of houses fell more than that of apartments (-0.3% against -0.1%).

Prices fall in Ile-de-France

In a context of inflation, real estate is suffering from the rapid rise in interest rates, which heavily penalizes households that have to borrow to acquire a property. Year-on-year prices are now down in Ile-de-France (-0.6%), while they are still rising in the provinces (+3.9%) despite a marked deceleration. The number of transactions over 12 months is estimated at 1.07 million, down sharply from the previous quarter (1.12 million) but still well above the historical average.

"The real estate market seems to have entered a new era, with interest rates increasingly strong," said Elodie Frémont, president of the statistical commission of the Notaries of Greater Paris, at a press conference. "It is therefore a real shock that is suffered in this quarter," says Frémont, noting a drop in transactions over 12 months, from 1.12 million at the end of 2022 to 1.07 million in the first quarter of 2023. A figure that nevertheless remains above the historical average.

  • Real estate
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  • New real estate
  • Housing
  • Inflation
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