Published
Article written by
/2021/12/14/61b8b98e077d1_france-2.png)
Friday, May 13, while real estate prices are soaring throughout France, interest rates are also rising. Borrowing capacity could therefore be reduced.
Real estate continues to soar in France, Friday, May 13. Should you wait or buy now? In Alsace, Marie Martinez moved not far from Strasbourg (Bas-Rhin). She signed two and a half years ago for an 80 m² apartment at 300,000 euros, before the price increases. In Montpellier (Hérault), a 90 m² townhouse with a garden sold in just ten days for 470,000 euros. In eight months, its price has increased by around 50,000 euros.
“We are reviewing the products completely. There are some who are oriented, suddenly, on apartments and more on houses. Or there are some who give up”, notes Laurent Phalippou, real estate agent at Immovance Montpellier. All medium-sized cities have seen a price increase since the Covid, particularly Brest (Finistère) and Reims (Marne), where goods have increased by 6%. Interest rates are also rising. “As rates go up, you lose borrowing capacity”says Cécile Roquelaure, director of studies, who advises not to wait to borrow.