Market Trends of Residential Real Estate Industry
This section covers the major market trends shaping the Residential Real Estate Market according to our research experts:
Detached Home Sales are Witnessing Lucrative Growth
In Q2 2021, the reservations for single-detached homes experienced a significant growth rate of more than 18.9% compared to the same quarter in 2020. Despite the disruption caused in the housing market due to the pandemic, detached home sales rose in 2021 compared to 2020. The sales are in a recovery phase to reach the pre-pandemic level.
Moreover, the rebound in detached home sales accounted for a growth rate of more than 48% between Q1 2021 and Q2 2021, accompanied by a dynamic annual trend compared to apartments. Meanwhile, the demand is increasing as 75% of people in France dream of living in a detached house with a garden, as per the survey conducted by France's housing ministry.
The average price for detached homes per batch is also increasing significantly. In Q2 2021, the sales price reached more than EUR 330,500 with a growth rate of 7.6%.
Increasing Demand and Supply of Housing Units in B2 and C Zones
The supply of housing units in France is broken down into four zones - A bis (includes Ile-de-France, Côte d'Azur, and the border area with Switzerland), B1 (conurbations with more than 250,000 inhabitants), B2 (municipalities with more than 50,000 inhabitants), and C (rest of the territory).
The B2 zone is experiencing more than 12% sales growth and 14% growth in the reservation of housing units. The demand in this zone increased by 40.8% in 2021 compared to 2020, whereas the supply is at 23.7%. The C zone represents only 5% of real estate development. Also, it experienced strong demand growth of 54% and supply growth of 87.8% in Q2 2021 compared to the previous year.
The increasing demand and supply in B2 and C zones are supported by detached housing unit sales. Meanwhile, apartment sales and reservations are witnessing lucrative growth in the B1 zone.
In addition, in Q1 2021, more than 17,760 outstanding housing units (including detached homes and apartments) were offered from B2 and C zones to meet the increasing demand from customers.
