Parisians are no longer fleeing the capital. Demand for homes in Île-de-France is falling

The situation

In 2020, after the lockdown caused by the COVID-19 pandemic, demand for private houses in Île-de-France sharply increased. Parisians, seeking more spacious housing, eagerly purchased properties in the suburbs. Cottage prices quickly rose, increasing on average by 8.3% over two years.

However, today the situation has changed. Due to the rise in interest rates from 1% to 4%, people's purchasing power has decreased. Housing in Île-de-France has become less affordable, especially for residents of the region. Moreover, Parisians are no longer seeking to move to the suburbs.

Consequences and Prospects

As a result, prices for private houses in the region have begun to decline. Mansions in the department of Hauts-de-Seine have seen the largest decrease (-10% in a year), as well as in other departments of the region (-5-6%).

Real estate market experts speculate that house prices in Île-de-France will continue to decrease in the near future. The situation may present an advantageous opportunity for those planning to purchase a house in this region.