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Real estate: prices fall in Lyon for the first time in 15 years

2023-05-30T06:12:17.174Z

Highlights: After years of double-digit inflation and a post-Covid recovery boosted by historically low interest rates, the average price of apartments fell by 3.1% in Lyon over the past year. A downward trend that is increasing, to -3.6% at the beginning of 2023. For an average price that now stands at 5099 euros per square meter on the city, against 5386 euros at the peak. "Like Bordeaux, Lyon has attracted new inhabitants, by the attraction effect of large cities, but has become relatively expensive," says an economist.


INFO LE FIGARO - The average price of apartments fell by 3.1% in Lyon over the past year, according to a study best agents presented exclusively to Le Figaro on Tuesday, May 30.


Le Figaro Lyon

The stall seen by notaries is there. After years of double-digit inflation and a post-Covid recovery boosted by historically low interest rates, the average price of apartments fell by 3.1% in Lyon over the past year, according to a study best agents presented exclusively to Le Figaro on Tuesday 30 May. A downward trend that is increasing, to -3.6% at the beginning of 2023. For an average price that now stands at 5099 euros per square meter on the city, against 5386 euros at the peak.

A more marked drop than in other major French cities since over the same period the average price of the 10 main cities increased by 1.3%. Earlier too, Lyon has experienced a slower increase over the last three years, of the order of 3% against 13% in these ten cities. It must be said that the capital of the Gauls had taken the lead with a decade 2010 marked by years of real estate fever and double-digit inflation. "In fifteen years, the average price of apartments in the city has risen dramatically with +71%", against +51% in the 10 main cities, says the study of Best Agents.

A dynamic supported by major projects on the wastelands of Gerland and Confluence especially as well as a phenomenon of metropolisation already initiated by the arrival of Parisians, especially at Croix Rousse. To the point that the services of the Metropolis had quantified the phenomenon of these Ile-de-France residents in exile at the end of the 2010s, who then represented 5% of Lyon buyers, and much more in places. "Like Bordeaux, Lyon has attracted new inhabitants, by the attraction effect of large cities, but has become relatively expensive," says Alexandra Verlhiac, economist for Best Agents. Expensive or even inaccessible with the increase in credit rates and especially the tightening of the conditions of obtaining. First-time buyers and the least well-off households thus find themselves in a dead end.

Golden Head

Fewer sales and transaction times that increase, regaining the two-month mark (58 days) against 48 days in May 2022, when interest rates fluctuated around 1.5%. "Sellers are not yet ready to lower prices and the work of negotiation is therefore more complicated," comments Alexandra Verlhiac, who notes strong disparity between neighborhoods. The most posh, are also those where the price, although high fluctuates little. "The most expensive neighborhoods are not very volatile," confirms the economist. They act as a safe haven. This is particularly the case of the Golden Square in the heart of the Presqu'île, where the Bellecour-Hôtel Dieu district is the most expensive in Lyon. The prices of the apartments are 6825 euros per square meter. "Demand is less sensitive to the economic context because it is less constrained by tighter credit conditions," insists the study by Best Agents. Same sector and same observation for Cordeliers-Jacobins, 2nd at 6757 € euros. The Puvis de Chavannes-Lycée sector of the park, at the gates of the Tête d'Or, completes the podium at 6702 euros.

In the list of districts, the 6th remains the most expensive at 6346 euros per square meter against 6312 euros in the 2nd, "penalized" by the Perrache Sainte-Blandine sector. The 1st completes the podium at 5832 euros, ahead of the 4th at 5714 euros. The 3rd and 7th are around 5000 euros on average but with significant disparities between the west, around the prefecture, and the east. In the 5th, it is Old Lyon (5869 euros) which strongly raises the average (4744 euros). The 8th and 9th close the march, just above 4000 euros, even if Monplaisir is now positioned at 5124 euros. It is also in these districts that the least expensive neighborhoods are located, Grange Rouge-Viviani being the most affordable (2800 euros) ahead of Santy-La Plaine (3175 euros) and Duchère (3182 €) per m² on May 1, 2023.

Deferral markets for rich and poor

But Lyon having become overall overpriced, with this average of more than 5000 euros on the city, carryover markets have settled in the rest of the metropolis. The trickle-down theory dear to Gérard Collomb seems to operate, de facto, while prices continue to rise in the other 58 municipalities of Greater Lyon. In reality, this carry-over market is twofold. With on the one hand an opulent suburb in the Monts d'Or and the west of Lyon always in demand and on the other hand a southern and eastern periphery that offers more area for good business. "The more we want a large home, the more we will go outside where there are still cities that allow to gain in surface," says Alexandra Verlhiac. Without going as far as the Gier valley, popular for its houses at relatively low prices, the south of the Lyon metropolis is one of them. With a median purchasing power, 82 square meters are acquired in Givors against 39 in Lyon. Still accessible, these municipalities are also those that are progressing the most by capillarity effect and catching up (+3.7% for Grigny and Feyzin).

Desires for space and greenery, this is the post-covid trend, supported by the rise of teleworking. For those who can afford it, the Monts d'Or and the west of Lyon allow you to do both, just minutes from the heart of the metropolis by train. "These cities near Lyon are on an upward trend because they are less affected by the difficulties of access to credit," notes Alexandra Verlhiac. And they too continue to increase significantly on the price side, by 3.3% in Charbonnières, 3.2% in Limonest and 3% in Collonges. To the point of displaying prices higher than the Lyon average for several of them.

Source: lefigaro

All news articles on 2023-05-30

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