Property market: Expansion of square footage available in these 7 major cities compared to 5 months ago
Title: Soaring Housing Purchasing Power in 21 Cities as Market Recovers
By: Christine Lejoux Real Estate Editor
Published on, Updated on
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If you're a Clermont-Ferrand resident yearning for more living space as your toddler grows significantly faster than your apartment, brace yourself for some good news! Clermont-Ferrand finds a spot among the seven major cities where housing purchasing power has shot up the most since the start of the year! The city of Puy-de-Dôme now offers a couple a whopping 82 square meter apartment, a boost of three square meters over the January figures, according to SeLoger, the real estate ads portal. This calculation accounts for the median city income, determined by INSEE, a credit installment representing 33% of salary, an average interest rate of 3.35%, observed by Empruntis for 20-year loans, and a square meter price of €2,139 as of June 1st.
joining Clermont-Ferrand on this list are Nîmes, Roubaix, Tourcoing, Calais, Colmar, and Amiens. Like our capital city, they have been witnessing a steady drop in the prices of old apartments since the start of the year, ranging from -2.4% in Roubaix to a significant -3.8% in Colmar, following a two-year price slump caused by spiking credit rates in 2022 and 2023. Interest rates have dipped from a peak of 4% in Autumn 2023 to a current level just over 3% in mid-2025, contributing positively to the improvement in purchasing power for potential home buyers.
In total, out of France's 51 largest cities, 21 exhibition positive trends in housing purchasing power since January 1st. However, it remains stagnant in 13 cities, and even declines in 17 others. Mulhouse is one such city, where a couple must now compromise on a 131 square meter apartment, five square meters less than in January. In Le Mans, homeowners can forget the 90 square meters they might have dreamed of at the beginning of the year. In Rouen, a disappointing three square meters has to be written off. This can be attributed to the revival of housing prices in these cities, boosted by a gradual recovery in real estate transactions. Prices in Mulhouse have surged by 4.3% since the start of the year, while Rouen and Le Mans have experienced increases of nearly 5% and 5.7% respectively.
This price trend is becoming the norm across France's 51 largest cities, with housing prices rising by an average of 0.2% since January. On the other hand, the decline in interest rates, which first surfaced more than a year ago, is starting to slow down, with rates hovering around the 3% mark for two consecutive months. This stable rate seems far from ideal for housing purchasing power.
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While purchasing power swells in 21 cities, it remains stagnant in 13, and falls in 17 more. Mulhouse, for instance, now regretfully offers a 131 square meter apartment, a devastating five square meters less than what was on offer in January. In Le Mans, homeowners must settle for a measly 86 square meters. In Rouen, a sizable three square meters are lost. This downward trend can be linked to the Small increase in housing prices in these cities following a pickup in real estate transactions. Prices in Mulhouse have risen by 4.3% since the start of the year, while Rouen and Le Mans have witnessed increases of nearly 5% and 5.7% respectively.
A consequential increase is witnessed in the overall housing prices in the 51 largest cities in France, with a rise in average prices by around 0.2% since January. This growth comes amidst a slowing down of the initial decline in interest rates, which began more than a year ago, as rates stabilize for two months at around 3%. A scenario less than favorable for housing purchasing power.
Learn about their publications: Housing Purchase, Housing Prices, Mortgage, Purchasing Power
- In the realm of personal-finance and investing, a significant decline in interest rates has positively affected housing purchasing power in 21 French cities, such as Clermont-Ferrand, Nîmes, and Roubaix, reducing the financial burden for potential home buyers.
- For those considering investing in real-estate, it's crucial to also consider the actions taken by city authorities, as seen in the rise of housing prices in Mulhouse, Rouen, and Le Mans, which could diminish the housing purchasing power and potentially affect the returns on such investments.