France: demand outpaces supply

French notaries have made a research and found out, that from 2000 to 2019, property prices rose by 115%, and land soared by almost 200%. The land plot price is one of the significant cost items for new construction, and obviously, the more expensive the plot, the higher the real estate prices.

Building plots, ready for constructions are steadily reducing, especially in cities where high demand and legislative restrictions regularly increase prices for end users. As the study shows, the land price runup for building land in large and medium-sized cities appeared after the 2008 financial crisis. Since 2000, all three types of land plots, namely in cities, suburbs and rural areas have almost tripled, but the gap between suburban and rural lands has grown bigger.

Another important point is that: the smaller the plot, the higher the price per "square". During recent years, plots with an area of ​​less than 600 square meters were sold six times more expensive per "square" than having an area of ​​more than 1,500 square meters.

It is also obvious that regional differences remain very significant: land in Bouches-du-Rhone (Cote d'Azur) until are sold on average five times more expensive than in Creuse (central France. Experts forecast that after the upcoming global downturn, the gap between Paris real estate and the rest of France will grow.

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