Real estate: will the coronavirus put an end to the rise in prices?

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Will the real estate market hit the coronavirus crisis?

So far, nothing obvious.

Despite the epidemic, prices continued to climb.

But the landscape is changing, according to Nicolas Barré, editor-in-chief of Les Échos and columnist on Europe 1. 

"For the time we have been waiting for this turnaround, here it is finally. We can see it all over France: we are probably experiencing the end of a cycle of real estate price increases that had lasted for five According to the figures collected by Meilleur Agents in the ten largest French cities, prices have calmed down and the market has reached a plateau.

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Coronavirus: follow the evolution of the situation Tuesday September 1

It's very clear in Paris, where prices have been stable on average since spring.

They remain at a very high level, of course: 10,600 euros per square meter.

But in this usually speculative market, things are no longer increasing.

Same thing in Lyon, Toulouse, Lille or Marseille.

Possible fall in prices

However, will prices go down?

It is possible, several clues point in this direction.

First of all, the effects of the crisis, with rising unemployment, will really be felt this fall.

Then there is a very clear tightening of credit.

Banks refuse a lot of loans, especially if you work in the most fragile sectors such as hotels or tourism.

For the first time in five years, the mad house price curve has peaked and is likely to reverse before the end of the year.

However, it is difficult to bet on a collapse, for a simple reason.

Interest rates will remain very low, it is still very interesting to get into debt under these conditions. "