France Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

12.3x

Ratio of property prices to annual income

Rental Yield

2.6%

Average annual rental return

Price to Rent

38.8

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of France Real Estate trends and investment implications

Market Overview

France's property market exhibits signs of overvaluation with a high price-to-income ratio of 12.3 and low rental yields at 2.6%. Investors should be cautious as the market appears to be at or near its peak, suggesting limited short-term appreciation potential. The price-to-rent ratio of 38.8 indicates an economic rationale for renting over buying, especially in metropolitan areas.

Key Findings

Data-driven insights

•Price-to-income ratio is 12.3, indicating potential overvaluation relative to average incomes.
•Rental yield stands at 2.6%, which is low compared to average European yields and current interest rates.
•Price-to-rent ratio is 38.8, suggesting renting is more economical than buying in the current climate.
•Building permits issued are 39,067, reflecting a cautious approach to new developments.

Market Trends

Historical patterns

•The long-term trend shows substantial price growth from 1950 to 2024, but recent years indicate stabilization.
•The rental market has tightened, with yields decreasing steadily over the past two decades.
•The property market has seen cyclical peaks and troughs, with the current cycle likely near a peak.

For Investors

Actionable takeaways

•Consider waiting for potential market corrections before making large investments.
•Focus on properties with higher rental yields to offset low average yield rates.
•Target properties that are undervalued or in emerging neighborhoods with growth potential.
•Monitor interest rate movements closely, as changes could impact investment viability.

Market Context

France's property market is mature and heavily influenced by economic and policy factors. The market's historical resilience is counterbalanced by current affordability challenges, requiring strategic investment decisions.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.