Real estate prices decreasing : the right time to buy ?

In an inflationary context, real estate is a good alternative to financial investments. However, some buyers are concerned about the soaring cost of energy, rising interest rates and the geopolitical situation. However, real estate remains a safe haven, where current rates allow you to get into debt while preserving your capital. Without forgetting that the insurance of the real credit is a protection for the borrower and his heirs. Let's take stock.

Prices fall in Paris, remain stable or rise elsewhere

In Paris, property prices continue to fall on average, resulting in a surplus of properties for sale. This unprecedented situation on the Parisian market is giving buyers back their purchasing power and they are not hesitating to take up positions. However, it is essential to remember that flawless, ideally located and well-maintained properties always sell for their price.

Elsewhere in France, prices have continued to rise as a result of the real estate trends observed after containment. The desire for more space has sometimes led to a shortage of properties for sale, particularly by the sea and in medium-sized towns.

Continued rise in real estate rates

After 5 years of decline, interest rates are rising rapidly. In December 2021, the average rate (all durations combined) recorded by the Observatoire Crédit Logement/CSA was 1.06%. In August 2022, this same rate reached 1.82%, catching up with the level recorded... at the beginning of 2016! Note that the rates remain very low to realize a real estate project.

What you need to remember for your real estate purchase


It is important to emphasize that there is no such thing as a bad time to buy if you have the project. However, it is essential to adapt your project to the economic reality of the markets. By informing yourself about the loan conditions on the one hand, and by checking with your bank advisors on the other hand, you will find the best solution to finalize your purchase.



Real estate is by definition a long term investment and prices should continue to increase everywhere due to a lack of housing. Moreover, for prestige real estate, which is the driving force of the real estate market, rare properties and exceptional addresses always sell for a high price and always find a buyer... The right time to buy will therefore be yours. But you will be able to take advantage of the still low rates by carrying out your real estate project before the end of the year, because they should be close to 3% at the beginning of 2023...



To help you, do not hesitate to call upon the prestigious real estate agents of Engel & Völkers. These experts will accompany you at every stage of your project to find the address that will meet your criteria and your requirements.