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The Ministry of Territorial Cohesion released on Thursday the figures for the new real estate market for the year 2018. While the price of goods is rising, the volume of transactions has meanwhile declined, which should be continue in 2019. Collective dwellings are significantly less affected by this trend than single-family homes.
The number of new home sales fell sharply in France in 2018. The data revealed this Thursday, February 14 by the Ministry of Cohesion of the territories, and relayed by The echoes, indicate a 3.1% fall in transactions in the fourth quarter of 2018 compared to the same quarter in 2017. The volume of sales is however higher than that observed in 2015 and 2016.
The individual more affected than the collective
128,000 new homes were sold throughout the year. This represents a decrease of 1.9% compared to the previous year. This downward trend affects much more individual dwellings (-10.1%) than collective dwellings (-1.2%).
The finding is the same on the side of the number of properties put on sale. It fell by 3.9% in 2018 with 121,500 homes put on the market against 126,500 in 2017. The phenomenon is mainly due to collective housing since individual housing has increased by 2.4%.
This downward trend is expected to continue throughout 2019. Olivier Eluère, real estate economist quoted by Les Echos, estimates that sales could fall by 6%. The specialist explains the situation by "The rise of the refocusing of support measures and the inadequacy of supply".
In terms of tariffs, the new real estate market recorded an annual increase of 3% for collective goods and 0.6% for the individual. At the end of 2018, a new apartment was selling on average 4,125 euros per m². The average price of a single house reached 273,000 euros.