Le Figaro Lyon
After years of euphoria, the Lyon real estate market is suffering from quite a hangover.
Sales volumes collapsed in the Rhône department in 2023, falling by 16.5% compared to an already declining year 2022, according to figures presented by FNAIM this Tuesday, January 30.
A fall all the more dizzying as the metropolis was one of the most dynamic in France in this area in the 2010s.
“This drop can be explained by a combination of constraints appearing at the same time on the market and by an inflationary context
,” explains the Rhone federation.
On the constraint side, she points to the action of the Metropolis of Lyon, both on the shortage of new housing -
"lack of incentive for construction"
- and the control of rents in Lyon and Villeurbanne.
“Beyond scaring away investors, this measure led to the exit of 9,000 housing units from the rental stock
,” assures FNAIM.
Regulatory and economic constraints
An
“absurd argument”,
Renaud Payre (PS), vice-president for housing, recently retorted in the columns of Le
Figaro
.
“Already, at the time of its implementation, only 15% of rents were non-compliant.
Then, what would be the interest of an owner to no longer rent at the very moment when he can no longer find a buyer to sell?
, he argued
.
Especially since rental demand is increasing.
And prices with, +2.4% in Lyon.
In terms of real estate development, the metropolis recalls having released 10 million euros urgently at the end of September to finance the construction of 2000 to 3000 housing units
.
The last constraint comes from the State, with the obligation of energy renovation of thermal strainers.
These accommodations classified F and G will be prohibited for rental from 2028 and represent 10.9% of the Rhone stock.
Now shunned by buyers, they are seeing their price fall sharply, to the benefit of a few investors who are embarking on large-scale thermal renovations.
Prices are plummeting in Lyon
Prices, in fact, are suffering from this situation,
“marking time after years of increases”
.
The fall is particularly marked in Lyon, where properties lost on average 6.3% of their value last year.
With a price per square meter now established at 4,716 euros when it was close to 5,000 euros just a few months ago.
“
The 2nd and 6th arrondissements remain the areas where prices are the highest
,” specifies the FNAIM.
Only the 9th arrondissement still displays prices below the €4,000 per square meter mark
.
Ditto in Villeurbanne, where the average price is now 3,787 euros.
“This decline should also be qualified, as prices have reached record levels over the last ten years
,” underlines the FNAIM.
Also to be qualified in the department with progressions in other cities, such as Villefranche-sur-Saône.
The Covid effect seems to continue externally with an increase also in Vienne, in northern Isère.
Read alsoReal estate: prices falling in Lyon for the first time in 15 years
An optimism that the sector hopes to find in Lyon in 2024, driven by borrowing rates which stabilize around 4%.
“The signals are turning green again!”
, welcomes the FNAIM.
“2024 will be a year of transition.
The end of the increase in borrowing rates and the fall in prices should restore purchasing power to households,”
assures Pascal Pancrazio, president of the FNAIM du Rhône.
Rates which have even begun their descent for the first time since 2022.
“A significant pause after a series of consecutive increases, offering hope of future easing”
, according to Nicolas Fraioli of La Centrale de Financement.
Key rates should no longer increase, or even fall by the end of the year
.
Restrictions on debt rates and contributions have also already been relaxed on the banks' side.