In a sometimes challenging economic context, the real estate sector is witnessing worrying trends. The significant drop in home construction is accompanied by a rise in prices that affects many potential buyers. Data shows that an increasing number of families are facing the rise in costs, exacerbated by economic and inflationary challenges. This situation raises questions about the future of the real estate market and the strategies to adopt to navigate this delicate situation.
The real estate sector is going through a delicate period, marked by a significant decline in home construction, with a decrease of 23% in new constructions in 2024. This trend is taking place in a context of high inflation and rising costs, which directly impact real estate prices. Indeed, the prices of older homes have been continuously falling, while the pressure from demand remains strong in several major cities, causing price increases in 38% of the affected areas. Forecasts for 2025 suggest a rise in prices, as the market prepares to regain balance in the face of current structural challenges.
The drop in new home construction directly impacts the real estate market. Statistics show that in 2024, the number of new constructions significantly decreased, by as much as 23% compared to the previous year. This trend is accompanied by a rise in prices that also affects renovations and older properties. The costs of materials, exacerbated by inflation, impose increasing constraints on developers. Their ability to build and meet buyers’ expectations is being put to the test.
State of the real estate market and forecasts
In France, real estate prices are experiencing a continuous rise, fueled by growing demand. According to recent data, 38% of major cities have recorded a price increase over the year. However, this observation is contrasted by falling prices in some regions, such as a drop of 6.7% in Lyon. Expectations for 2025 predict a continuation of this trend, with price movements of up to 2.8% in Montpellier, as consumers hope that this situation could create a more sustainable balance in the market.
Factors influencing the real estate market
Many factors come into play to explain the current dynamics of the market, including interest rates that significantly influence purchase decisions. Lower interest rates favor access to home ownership, but with rising construction costs, buyers must adapt. New technologies, such as 3D printing, are beginning to play a role both in the design of new constructions and in cost optimization. Innovative projects are emerging, especially in rapidly developing areas, which could revolutionize the way homes are built and marketed.
