Residential Real Estate - France

France

The Residential Real Estate market market in France is projected to reach US$21.05tn in 2024.
This value is expected to show an annual growth rate (CAGR 2024-2029) of 3.56%, resulting in a market volume of US$25.07tn by 2029.
When compared globally, China is forecasted to generate the highest value in the Real Estate sector, with US$112.9tn in 2024.
The demand for luxury apartments in France is steadily increasing, driven by international investors seeking upscale properties in Paris and the French Riviera.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in France is experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trend. Customer preferences in the Residential Real Estate market in France are shifting towards more modern and sustainable housing options. Buyers are increasingly looking for properties that are energy-efficient, have green spaces, and offer amenities such as gyms and swimming pools. Additionally, there is a growing demand for properties in urban areas that are close to public transportation and have easy access to shops, restaurants, and cultural attractions. The market is also being influenced by several trends. One trend is the increasing popularity of co-living spaces, where individuals rent private rooms in shared apartments or houses. This trend is driven by the desire for affordable housing options and the opportunity to live in vibrant communities. Another trend is the rise of online platforms that connect buyers and sellers, making it easier to find and purchase properties. These platforms provide a wide range of options and streamline the buying process. Local special circumstances in France are also contributing to the development of the Residential Real Estate market. One special circumstance is the availability of government incentives for homebuyers, such as tax breaks and low-interest loans. These incentives make it more affordable for individuals to purchase properties and stimulate demand in the market. Additionally, France has a strong rental market, with many people choosing to rent rather than buy. This creates opportunities for investors and developers to build and rent out properties. Underlying macroeconomic factors are also playing a role in the growth of the Residential Real Estate market in France. The country has a stable economy and low interest rates, which make it an attractive market for both domestic and international investors. Additionally, France has a high population density, particularly in urban areas, which creates a strong demand for housing. This demand is further fueled by population growth and an increase in the number of households. In conclusion, the Residential Real Estate market in France is experiencing growth and development due to customer preferences for modern and sustainable housing, trends such as co-living spaces and online platforms, local special circumstances including government incentives and a strong rental market, and underlying macroeconomic factors such as a stable economy and high demand for housing. These factors are driving the market forward and creating opportunities for buyers, sellers, and investors in the Residential Real Estate sector.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.