Real estate market in Nantes is experiencing a downturn
In the bustling city of Nantes, home to 325,000 residents, the spirit of real estate agents droops. Despite the city's allure, boasting iconic landmarks, riverside charm, and cultural spectacles like La Folle Journée and Les Machines de l'île, it's still a tempting draw, even being recognized as one of the most delightful cities in Europe by Time magazine in 2004.
Just a couple of hours from Paris via TGV and less than an hour from the coast, the city's appeal has driven a 27% increase in property prices over the last decade, according to Meilleurs Agents. Pascal Di Domenico, director of agencies at Era, shared that "all types of properties were selling, and the Covid-19 brought us entire TGV trains of Parisians who wanted to move to Nantes."
However, since 2022, the market has slowed down, unlike other cities in the region, particularly those on the coast. While Nantes prices have dropped in recent years: -15% over the last two years, according to Meilleurs Agents, Stanley Kollen, IAD advisor in Nantes, notes that "in some areas, the drop is 20%." Average prices are now below €3,500 per square meter for apartments and around €4,000 per square meter for houses.
The sluggish real estate market in Nantes seems to be a reflection of economic conditions nationwide. In 2022, the French real estate market faced difficulties due to a surge in interest rates by the European Central Bank and high inflation, leading to reduced demand and lowered house prices across France. Furthermore, coastal cities in France, which often have different economic drivers such as tourism, have likely been impacted similarly by these broad economic trends. The French real estate market as a whole experienced a downturn in 2022 and 2023, contributing to the stagnation in Nantes' market.
Investors might find opportunities in Nantes' real-estate market, given the recent drop in property prices, with apartments selling below €3,500 per square meter. Finance experts may also observe the potential impact of France's broader economic conditions, such as high inflation and increased interest rates, on the city's real estate market, considering the market's sluggish performance in 2022 and 2023.
