If you look at the French Property Market in 2023, there are 3 immediate challenges that come to mind: inflation, rising interest rates and tightening supply. But the housing market in France will remain strong, especially when viewed from an historical perspective. During 2023, house prices in France will stabilise a bit (perhaps growth will drop below 5%) and the number of property sales will remain just above 1 million during the year. If anything, 2023 will be seen as a ‘soft landing’ year, as the explosion in the French property market after the Covid-19 confinements, gives way to a more level of activity.
The housing market in France over the last 5 years witnessed almost unprecedented levels of growth both in terms of prices (house prices have increased by 27.8% over the last 5 years in mainland France) and the number of property sales. Property transactions have topped the historically significant 900,000 mark in every year since 2017 and the rolling average of property sales have hit over 1 million in 13 out of the last 20 quarters.
Real Estate Credit Investments Limited (LON:RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.
