Who’s Buying Real Estate in France Today?

Explore the current buyers in France real estate market amid tightening finances and cautious trends in 2024. Key insights and analysis provided.

Who's Buying Real Estate in France Today?

Who exactly is buying real estate in France these days? Well, in a landscape characterized by tighter financing conditions, uneven growth across eurozone countries, and inflation that only decided to take a breather at the year's end, the property market began to contract in 2023. This downward trend continued into the first half of 2024, as both buyers and sellers adopted a rather cautious wait-and-see approach.

Now, let’s talk numbers. The overall real estate market took a hit, with a staggering 21% drop in transactions in 2023. However, it seems that non-resident buyers were not quite as deterred, experiencing a relatively milder decline of 14%, while foreign residents saw a 16% drop. Interestingly, the average purchase amount for non-resident foreigners dipped by 4%, yet it still stands at a robust €364,000—1.5 times higher than the average for resident buyers, which is a mere €230,000.

In a surprising twist, Belgian buyers have emerged as the new kings of the castle, representing 20% of non-resident purchases in France in 2023, effectively dethroning the historically dominant British buyers. Meanwhile, Germans and Dutch buyers also saw their transaction numbers plummet by nearly a quarter. The Americans, however, seem to be holding steady, maintaining their transaction numbers despite the market's turbulence.

When it comes to regions, Île-de-France is the belle of the ball, securing a spot on the podium for both transaction volume and average transaction amount across all buyer categories. It’s one of the few regions, alongside Hauts-de-France and Corsica, that actually enjoyed a positive uptick in non-resident transactions between 2022 and 2023.

Now, let’s break it down further:

Non-resident foreigners:

- Transactions fell by 14% in 2023.

- Average transaction amount decreased by 4%, yet remains significantly higher than resident buyers at €364,000 versus €230,000.

- Belgians are now the top non-resident buyers, followed by the British, Germans, and Dutch.

French expatriates:

- Their transaction volume plummeted by 24%.

- Île-de-France, PACA, and Auvergne-Rhône-Alpes account for nearly half of these transactions.

- Île-de-France alone represents one-third of the total volume, with an average purchase price of €650,000—double the average transaction amount of €348,075, which saw a 6.5% decline.

Foreign residents in France:

- Their transactions decreased by 16%.

- The average transaction amount fell by 8.6%, now at €226,090.

- Only Île-de-France (€310,000) and PACA (€264,000) exceed the national average.

British tax residents:

- Their transactions dropped by 20%, with a staggering 28% decrease in value.

- The average transaction amount is now €303,300, down by 9%.

- Significant declines were noted in PACA and Auvergne-Rhône-Alpes, with decreases of 30% and 25%, respectively.

American tax residents:

- Their transaction numbers remained stable, but the value of these transactions fell by 12%.

- The average transaction amount is €572,700, down from €653,400 in 2022.

- They primarily invest in Île-de-France (25%), PACA (23%), and Occitanie (17%).

Dutch tax residents:

- Their transactions decreased by 29%, with a 34% drop in value.

- The average transaction amount is now €239,000, reflecting a 7% decrease.

- The Grand Est region is the only one to see a slight increase (+1%), while PACA has exited the Top 3.

In summary, while the France real estate market is experiencing a contraction, certain demographics and regions are faring better than others. The landscape is shifting, and as always, the only constant is change—much like the weather in France!