Real estate purchase: monthly payments have been soaring for a year in major cities

How much do you have to pay each month to afford a 70-square meter property in a large French city, if you borrow over 20 years? In a study unveiled on Wednesday, Meilleurtaux provides answers to this question. The online broker has indeed calculated the total monthly cost (credit + property tax) to be paid to acquire a typical property in the 20 largest French municipalities. Unsurprisingly, this amount has increased since last year: +145 euros per month on average! The increases in credit rates, the increase in real estate prices, and the increase in property tax in most major French cities explain this surge in monthly payments.

To arrive at this observation, Meilleurtaux first estimated the price of a 70 square meter property in the 20 largest French cities, based on average prices per square meter. The online broker then simulated the monthly payments to be repaid for a loan of the amount of the price of housing (over 20 years at 1.85%). To obtain the total monthly cost to be paid, Meilleurtaux finally added to this monthly payment the amount of the local property tax (smoothed over 12 months), which the new owner must now pay.

In Paris, the increase in the monthly sum to be paid to become an owner is particularly spectacular: +484 euros over one year! If the property tax increased slightly in 2022 (+25 euros per year) in the capital, it is indeed the increase in credit rates (from 1.1% in 2021 to 1.85% in 2022) that caused the explosion in monthly payments for buyers.

The spectacular increase in monthly payments in Anger

Monthly payments have also increased sharply in Anger (+281 euros compared to last year), a town where real estate prices have soared since the health crisis. The significant increase in property tax in the Maine-et-Loire prefecture (+129 euros over one year) also contributed to increasing monthly payments. In total, it is now necessary to pay an average of 1,388 euros per month to acquire a property in Angers.

If the sums to be paid each month to acquire a property have increased in all of the 20 French cities, some municipalities are doing better than others. In Saint-Etienne, for example, monthly payments have increased by “only” 41 euros since last year. Buying a 70-square meter home in Saint-Etienne will cost you only 629 euros per month, the lowest price in major French cities. The increase also remained moderate in Nîmes (+52 euros per month) and Le Havre (+63 euros per month).

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