SHARE
COPY LINK

PROPERTY

Where in France are property prices are starting to dip and by how much?

Half of France’s 35 largest cities have seen property prices fall by as much as 3 percent in the last three months, figures show.

Where in France are property prices are starting to dip and by how much?
(Photo by PHILIPPE HUGUEN / AFP)

After two years of steadily rising prices across France, the property market is starting to change. Three of France’s 10 largest cities saw falling house prices in October, rising to six in November, and – as of now – the property market is dipping in eight of the biggest conurbations in the country.

Only Lille and Marseille continue to show slight increases in property prices, respectively of 0.7 percent in Lille (to €3,567 per square metre) and 0.8% in Marseille (€3,868 per square metre) in the past month.

On average, France’s 10 biggest cities saw a 0.1 percent fall in property prices in the last month – not a large fall, but an indicative one, according to the experts. Over the past three months, property prices have gone down in 18 of France’s 35 largest towns and cities.

READ ALSO A buyer’s market? How French property prices are set to fall in 2023

We are entering a new cycle,” Thomas Lefebvre, of online property agent Meilleurs Agents, told Le Parisien. “We are not experiencing a correction, nor a stall in terms of prices, but rather a downward cycle that is spreading to all of France’s major cities.” 

While the winter period traditionally sees a slowdown in sales, rising interest rates are also preventing property hunters from putting in offers, Lefebvre added, with renters now waiting eight years on average to take the plunge into property ownership, compared to four years as recently as 2020.

READ ALSO Courtier: Should you hire a broker when buying property in France?

Increased inflation and soaring energy prices are also having an impact, leading to what Lefebvre described as a “market freeze”, with fewer buyers and sellers still reluctant to accept lower offers.

As a result, the number of sales agreements has dipped between nine and 10 percent on an out-of-the-ordinary 2021 property market, according to the Orpi property cooperative.

READ ALSO EXPLAINED: Time-frame for buying and selling property in France

The length of time it takes for a Parisian property to be sold has jumped five days to an average of 68 days, in 2022, while the average price per square metre in the capital has dropped 1.3 percent to €10,312 on average – a figure inflated by high-end properties.

While 60 percent of property sales in Paris are still above €10,000 per square metre, at the lower end of the market prices have dipped below the threshold for the first time in several years.

READ ALSO Revealed: The ‘hidden’ extra costs when buying property in France

Bordeaux, meanwhile, has seen property prices drop 3.1 percent in 2022, and 2.4 percent in the past three months alone; while prices have fallen 3.4 percent in Mulhouse in the last three months after jumping 2.6 percent earlier in the year, and have dropped 3.1 percent in Nîmes and Rouen.

But, although prices are starting to fall in larger cities, the opposite is true in satellite towns where transportation is good, as buyers start to look further afield.

READ ALSO MAP: The 20 cheapest French towns and cities to live in

In Chambéry, between Grenoble, Annecy and Lyon, the Laforêt Immobilier group has recorded an increase of more than 50% in its sales – it’s location is ideal for all cities, while the rise of remote working allows for the possibility of just one or two commutes per week.

Here are average property price changes the 20 biggest towns and cities in France:

City

Percentage price change
in the
past 3 months

Percentage price
change
in 2022
Mulhouse
-3,4 percent
2,6 percent
Nîmes
-3,1 percent
1,3 percent
Rouen
-3,1 percent
2,2 percent
Rennes
-3 percent
3 percent
Dijon
-2,9 percent
0 percent
Strasbourg
-2,9 percent
2,4 percent
Angers
-2,7 percent
1,2 percent
Bordeaux
-2,4 percent
-3,1 percent
Aix-en-Provence
-2,3 percent
5,9 percent
Boulogne-Billancourt
-1,9 percent
0,1 percent
Le Havre
-1,6 percent
-0,8 percent
Toulouse
-1,3 percent
1 percent
Paris
-1,3 percent
-1 percent
Lyon
-0,9 percent
-0,1 percent
Saint-Denis
-0,9 percent
4,5 percent
Brest
-0,3 percent
1,6 percent
Montreuil
-0,3 percent
3,8 percent
Limoges
-0,2 percent
5,4 percent
Nice
0 percent
6,1 percent
Nantes
0,1 percent
3.4 percent

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Who is exempt from France’s 2024 property tax declaration?

The deadline is fast approaching for property-owners to have completed the property tax declaration - here's a look at who needs to do this, who is exempt and the penalties for missing the deadline.

Who is exempt from France's 2024 property tax declaration?

The deadline to have completed the déclaration d’occupation, also known as the déclaration de biens immobiliers, this year is June 30th. 

If you’re declaring online, you have until 11.59pm to have completed the form, if you’re declaring on paper you need to ensure that your form reaches the tax office by June 30th (which is a Sunday, so you will need to factor that in if you are returning it by mail).

After a raft of technical problems last year, French tax authorities have promised ‘improvement’ to this year’s declaration, and have also made the form available in a paper version for those who either don’t have internet access or who aren’t confident with online processes. 

Who has to do it?

The declaration must be completed by anyone who owns residential property in France – whether or not they are French residents. This therefore includes foreign second-home owners.

The declaration must be done regardless of what you use the property for – whether it is your main home, a second home or is rented out on a long or short term basis.

However, unlike the income tax declaration (déclaration des revenus) this is not an annual task – if you filled out the declaration last year and nothing has changed, there is no need to do it again.

READ ALSO Vocab guide for the French property tax declaration

What about if I have bought or sold a property in the last year?

The property tax declaration concerns your situation on January 1st 2024 – if you have bought a property in France since that date there is no need to do the declaration this year, although you will have to do it next year.

Property taxes are also charged based on the situation on January 1st, so if you have sold your property since January 1st you will receive one last property tax bill (which usually arrive in the autumn).

If the use of your property has changed in the last year – ie your second home is now your full-time residence or vice versa – you will need to fill out the declaration again detailing the current situation.

READ ALSO How to fill out the 2024 property tax declaration

Vacant property/ renovation projects

If your property is vacant you won’t pay taxe d’habitation, but you may be liable for one of the two ’empty homes tax’ charges – taxe sur les logements vacants (TLV) and taxe d’habitation sur les logements vacants (THLV) – depending on your local authority rules.

Be aware that ‘vacant’ has a specific meaning in tax terms – it is a property that is both unoccupied and unfurnished. A second-home is not unoccupied, even if you haven’t visited it for months or even years.

If you have bought a property as a renovation project, you have the option to declare it inhabitable (uninhabitable) which can see your two property taxes reduced or excused altogether for a period of up to two years. This would normally apply in cases of very derelict properties, for example where there is no water or electricity, no functioning bathroom or a roof with holes in it.

The easiest way to do this is to visit your local tax office to find out what rules are in place in your area.

Why do I have to do this?

The property tax declaration gives tax authorities the information that they need to set your property tax bills.

Property taxes in France come in two types; taxe foncière which is paid by all property owners – bills for this usually arrive in September – and taxe d’habitation, bills for which usually arrive in October or November.

Recent changes to the tax system mean that only second-home owners now pay the taxe d’habitiation – which is why the tax office needs to know what you use the property for.

READ ALSO How much should I expect to pay in French property taxes?

What if I miss the deadline?

There is a flat fine of €150 for missing the deadline. However, if you don’t provide information to the tax office they will likely send you a bill anyway, based on an estimate.

These estimates can be much higher than your real bill, and challenging them will require some complicated conversations with the tax office.

SHOW COMMENTS