Press release: who buys real estate in France ?

Exclusive ccf study on the french real estate market for foreign residents, non-residents and expatriates

A declining market, but one that is faring better than the general real estate market

Belgian buyers are now the leading nationality of foreign buyers in France Île-de-France at the top of the most attractive regions

Paris, July 15th, 2024

The CCF bank, through its dedicated team My Mortgage in France, presents an exclusive detailed study of the 2023 French real estate market for foreign residents, non-residents and French expatriates, based on notarial data.

In a context marked by tighter financing conditions, uneven growth in eurozone countries, high inflation that only slowed at the end of the year, and a tense geopolitical situation, the existing property market began to contract in 2023. The downturn continued in the first half of 2024, with buyers and sellers adopting a wait-and-see attitude.

MAIN FINDINGS OF THE 2023 STUDY

A market that fares better than the general real estate market: After several years of growth, the real estate market slowed down in 2023 with a 21% drop in the number of transactions. This decline is less pronounced for purchases made by non-residents (-14%) and foreign residents (-16%). Although the average amount of acquisitions made by non-resident foreigners decreased by 4% in 2023, it remains 1.5 times higher than that of resident buyers (€364,000 versus €230,000).

Belgians leading the rankings: Belgian buyers, who represent 20% of purchases made by non-resident foreigners in France in 2023, have dethroned the British, historically at the top of the ranking. Germans and Dutch also recorded a nearly quarter drop in the number of transactions. Only Americans remain stable in the evolution of their transaction numbers.

Île-de-France, the most dynamic region: With a place on the podium of the top 3 regions, for the volume of transactions as well as the average transaction amount, all categories of buyers combined (non-residents and foreign residents, French expatriates), Île-de-France is the most dynamic region of 2023. It is also one of the few, along with Hauts-de-France and Corsica, to benefit from a positive evolution in the number of transactions made by non-residents between 2022 and 2023.

APPENDICES

Focus on non-resident foreigners:

• The number of transactions made by non-resident foreigners decreased by 14% in 2023.
• The average transaction amount for this category decreased by 4%, but remains 1.5 times higher than that of resident buyers (€364,000 versus €230,000).
• Belgians have become the main non-resident foreign buyers, representing 20% of purchases, followed by the British, Germans, and Dutch.

Focus on French expatriates:

• The overall volume of transactions made by French expatriates decreased by 24%.
• Three regions concentrate nearly half of these transactions: Île-de-France, PACA, and Auvergne-Rhône-Alpes.
• Île-de-France represents 1/3 of the total volume with an average purchase price of €650,000, double the average transaction amount which stands at €348,075 (a 6.5% decrease).

Focus on foreign residents in France:

• The number of transactions made by foreign residents in France decreased by 16%.
• The average transaction amount for this category decreased by 8.6%, standing at €226,090.
• Only Île-de-France (€310,000) and the PACA region (€264,000) exceed the national average amount.

Focus on British tax residents:

• The number of transactions made by British tax residents decreased by 20%, and the value of these transactions decreased by 28%.
• The average transaction amount for this category is €303,300, a 9% decrease.
• The PACA and Auvergne-Rhône-Alpes regions recorded significant decreases of 30% and 25% respectively.
• The three regions where British tax residents invest are: Nouvelle-Aquitaine (39%, stable compared to 2022), Occitanie (15% versus 14% in 2022), Auvergne-Rhône-Alpes (11%, stable compared to 2022).

Focus on American tax residents:

• The number of transactions made by American tax residents remained stable, but the value of these transactions decreased by 12%.
• The average transaction amount is €572,700, down from 2022 (€653,400).
• The three regions where American tax residents invest are: Île-de-France (25% versus 26% in 2022), PACA (23% versus 26% in 2022), Occitanie (17% versus 13% in 2022).

Focus on Dutch tax residents:

• The number of transactions made by Dutch tax residents decreased by 29%, and the value of these transactions decreased by 34%.
• The average transaction amount is €239,000, a 7% decrease.
• The Grand Est region is the only one to progress (+1%), while PACA exits the Top 3 regions.

• The three regions where Dutch tax residents invest are: Nouvelle-Aquitaine (23% versus 21% in 2022), Bourgogne Franche-Comté (16%, stable compared to 2022), Grand Est (13% versus 9% in 2022).