According to the latest Statec data, published on 26 March in the “Housing in figures” brochure, house prices rose by 1.4% in 2024. This rise was driven by the price of old flats (+1.8%) and old houses (+3%). Prices for off-plan flats (VEFA, or ventes en l’état futur d’achèvement) remain on a downward trend (-2.4%).
This segment appears to be more dynamic, however, with the number of transactions up 27.6% for an increase in financial volume of 297.6%. By way of comparison, the number of transactions for existing flats rose by “only” 108.2%, for a financial volume that increased by 115.1%. However, according to Statec, this dynamic performance needs to be put into perspective, as it points to a high degree of volatility due to the still very small number of transactions--395 in total, worth a total of €264m. Of these 395 transactions, the state was the purchaser in 208 of them.
1,734 sales of existing properties in 2024
Activity on the property and land markets was boosted by a buoyant fourth quarter in 2024.
As a result, on the existing homes market, the number of transactions is even returning to levels above (for existing flats) or close to (for existing houses) pre-crisis levels. As for transactions in flats under construction, the level of activity remains less than half the pre-2022 levels.
Overall, there were 1,734 sales of existing properties, including 1,339 flats, in the fourth quarter of 2024. This is a far cry from the historical average of transactions in a fourth quarter over the 2017-2021 period, which was 2,096 units.
The 143% increase in financial volume, or €1.057bn, “stems largely from the increase in the share of more expensive flats under construction in total flat sales in the last quarter of 2024,” says Statec. It goes on to explain: “On average, a flat under construction is between 18% and 25% more expensive than an existing property of comparable size. Second, the price per square metre decreases with the size of the property. Finally, flat prices fall quite significantly as you move away from the capital.”
Timid recovery for building plots
Activity is also picking up in the market for the sale of building plots: the number of transactions is up by +109.2% compared to the end of 2023. “However, with just 364 building land transactions in the final quarter of 2024, activity remains at half the level of the pre-crisis years, with an average of 723 building land sales in the fourth quarter over the years 2017 to 2021,” explains Statec. The financial volume associated with these transactions rose by 85.5%.
Is the sector out of the woods? The Chambre immobilière doesn't think so. While the government’s housing subsidies were --a last-ditch extension, said prime minister (CSV)--it is calling for new, more targeted aid to come to the rescue of the VEFA sector and, by extension, the construction industry. These measures could, for instance, include an extension of completion guarantees.
This article was originally published in .