Real estate affordability drops in France

French buyers can afford less living space with the same budget, according to the CAFPI barometer. The decline in real estate purchasing power is evident in all twelve major cities studied, with Rennes experiencing the largest loss of 5.75 square meters in one year.

Rennes suffers the biggest loss

In Rennes, a monthly payment of 1,000 euros over 25 years would now buy 48.46 square meters, down from 54.21 square meters a year ago. This represents a 10.61 percent drop in the area that can be purchased with the same budget.

Paris and Nantes show smaller declines

Paris saw a smaller decrease in real estate purchasing power, with a loss of 0.65 square meters, or a 3.12 percent drop. Nantes had the smallest proportional decline among the cities, with a 1.99 percent reduction in accessible area.

Local price changes affect affordability

The differences in real estate purchasing power across cities are influenced by local price trends. In Rennes, a 7 percent rise in property prices over the past year has worsened the situation, while other cities experienced more moderate increases.

Loan rates contribute to the decline

In October, CAFPI reported average loan rates of 3.61 percent for 20-year mortgages and 3.75 percent for 25-year mortgages. These rates, combined with rising property prices in some areas, have reduced the amount of space buyers can afford with the same monthly payment.

Real estate agents adapt to new challenges

Real estate professionals are advising buyers to regularly reassess their budgets and adjust their expectations. Even small reductions in the amount of space that can be purchased can significantly impact the type of home a buyer can afford.