National property prices in France fell by almost 1% during the second quarter of 2023, building on a downward trajectory observed since the start of the year. Almost every region noted similar figures, except the south of France, which bucked the trend.
The Institut National de la Statisiques et des Etudes Economiques (INSEE), the entity that analyses and disseminates information on the French economy and affiliated statistics, has reported that existing property prices dropped by 0.8% in Q2 of 2023. This comes on the back of a national 0.3% contraction during the first quarter of the year.
Flats and apartments were hit hardest, falling by a full 1%, while house prices fell 0.6%.
It is the third quarter in a row that prices have fallen in the Île-de-France region and the capital of France, but a first for “provincial” France, which saw prices decrease for the first time since Q3 2016. Over a year, prices outside the Île-de-France remain up, but growth has decelerated.
In the seemingly bullet-proof south of France, though, the story is a bit different. The Provence-Alpes-Côte d’Azur (PACA) region saw a price rise of 0.7% during Q2 2023, roughly on par with the rises observed during the previous two quarters.
Prices for flats in PACA were up 1.4% in the last quarter, while prices for single family dwellings experienced a less vigorous rise, staying nearly stable at 0.1%.
The 12-month picture shows a rise of 4.5% over 2022 figures from the same period; a far cry from the negative growth in places such as the capital, which noted a 3.1% decline. PACA is, in fact, at the top of the pile for national and annual property price rises.
The nationwide volume of transactions has continued a modest downward turn, falling to 1,002,000 at the end of June 2023, from 1,071,000 in March 2023. No specific figures for the PACA region are currently available.
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