The state of the real estate market in France in 2022

Knowing the state of the real estate market in France is essential for anyone wishing to invest. A good global vision of things allows you to make the right choices for a good preparation of your project, taking into account the current constraints.

Our experts have stuck to it and share with you their little summary review of the real estate market in 2022, with current trends, the most interesting cities for a real estate investment and an update on current mortgage rates.

The main trends of the real estate market in France in 2022

Despite inflation due to the various crises around the world, the French real estate market remained dynamic in 2022. Notaries recorded approximately 1.1 million sales over the whole yeara level quite close to the historical transaction record of 2021.

The growth momentum remained on the side of houses. Indeed, following the confinement of 2020, French buyers increasingly favor the purchase of a house in order to take advantage of outdoor spaces with the family. This trend was confirmed in 2022. The number of home purchases thus increased by more than 6.5% against 4.7% for apartments.

As for prices, urban centers have seen a decline in attractiveness in recent months to the benefit of rural areas. For example, prices in Paris rose by only 1.2%, while an increase of more than 8% was recorded in certain rural areas. According to the analyzes of many experts, this trend should continue during the year 2023.

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On the investment side, with an average annual return close to 5% per year, SCPIs are still among the most attractive and most demanded real estate investments in 2022.

Rental real estate is not the rest. Thanks in particular to the tax reduction of up to 21% over 12 years, investments under the Pinel Law account for more than 48% of new home sales.

Another system very popular with the French: investment in LMNP. In furnished seasonal rentals or serviced residences, this form of tax exemption is attracting more and more new investors, especially in student towns. At the top of the list are notably Grenoble, Marseille, Rennes, Toulouse and Nantes.

In which cities to invest in the real estate market in France?

According to, Rennes offers the highest level of rental profitability de France on behalf of 2022. Deducting charges and taxes, rental investments in the Breton city offer a net rental return of 8%.

These performances are due, among other things, to a strong rental demand, to the developed transport network, and to its status as a student city.

On the second step of the podium, we find Le Mans, with an average return of 7.1% over the year 2022. Then come the cities of Angers and Brest, with respective average returns of 6.2% and 6, 1%.

In the top 10 cities with more than 100,000 inhabitants with high rental yields, we find Mulhouse, Caen, Besançon, Amiens, Limoges or Orléans. They all offer a net return of more than 4%.

As for the big cities, Montpellier, Bordeaux, Lille, Lyon, Strasbourg and Toulouse are the ones to keep in your sights for a profitable real estate investment. Prices have been rising steadily for more than 10 years and this trend should continue over the next few years.

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Real Estate Market In France 2022

What about the mortgage market in 2022?

The mortgage market no longer presents the same colors as in 2021. We are now a long way from the situation of historically low rates.

Rates doubled

At the end of 2022, banks are granting fewer and fewer mortgages at rates close to zero. According to data provided by the Crédit Logement/CSA Observatory, the average lending rate increased from 1.06% in November 2021 to 2.25% in November 2022, more than double.

For a conventional loan over 20 years, the banks granted a rate of 0.99% in November 2021, against 2.23% in November 2022.

Two main factors explain this strong increase:

  • The rapid rise in inflation, which stands at +6.2% in November 2022;
  • The increase in the ECB refinancing rate which went from 1.25% to 2% at the beginning of November.

Difficult access to mortgages for vulnerable households

The most vulnerable households are unfortunately the most affected by this situation. Banks are indeed more and more selective in the study of credit application files and favor the least risky profiles.

Obtaining a mortgage to buy your main or secondary residence could therefore become complicated in the coming months.

In order to put the odds on your side, make sure to optimize your profile by emphasizing the following three points in particular:

  • A significant personal contribution : the 10% of the amount requested is no longer sufficient. The ideal is to finance the project up to at least 20% with your personal funds. This can still be done via devices such as the zero-rate loan, the Action Logement loan or the PEL loan;
  • Borrow for a maximum of 25 years ;
  • Have a debt ratio of less than 35% of income.
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Finally, if the objective of your mortgage is to invest in the market, SCPIs are a simpler alternative. They are accessible to all budgets and make it possible to generate income over the long term without bearing the constraints linked to the daily management of a property.

Also Read: How Much Does Home Loan Insurance Cost?

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