Real estate situation in the Pays de Gex
Do you know the median property prices in the Pays de Gex? 🔎
The Chambre des notaires de l'Ain has published an annual study on the real estate market in the department in 2022. Below, we present our analysis of this data.
As a preliminary point, it is important to clarify what a median price is.
The median is the value that divides a series into two equal parts. For example, a median price of €400,000 indicates that 50% of properties sold for less than €400,000 and 50% for less than €400,000. The advantage of the median as a measure of trend is that it is not influenced by extreme values, either upwards or downwards.
The Chambre des notaires de l'Ain has published an annual study on the real estate market in the department in 2022. Below, we present our analysis of this data.
As a preliminary point, it is important to clarify what a median price is.
The median is the value that divides a series into two equal parts. For example, a median price of €400,000 indicates that 50% of properties sold for less than €400,000 and 50% for less than €400,000. The advantage of the median as a measure of trend is that it is not influenced by extreme values, either upwards or downwards.
HOUSES 🏠
Unsurprisingly, property prices have continued to rise and the Pays de Gex is the Aindinoise region where real estate prices are the highest.
As for old houses, their median price is €593,000. This amount may seem relatively low compared to the selling prices observed in the Pays de Gex. However, it is explained by the multiplicity of properties that pull the median down, including:
Some properties combine these two unfavorable factors, which penalizes them even more.
On the other hand, when a property has the most sought-after features by buyers and in the most sought-after areas, its price can be very high.
📈 Prices are rising and living space is decreasing...
Nevertheless, the median price of old homes is rising, from €541,300 in 2020 to €593,000 today, an increase of 9.5% in two years.
However, these figures deserve to be analyzed. Indeed, we note that the prices of old houses have increased, but also that the median living area has decreased. It has increased from 130 m² in 2020 to 112 m² in 2022. The same applies to the median area of the land, which increased from 740 m² in 2020 to 650 m² in 2022. Thus, a house with the characteristics of 2020 would be worth about € 700,000 in 2022, an increase of more than 25%.
As for old houses, their median price is €593,000. This amount may seem relatively low compared to the selling prices observed in the Pays de Gex. However, it is explained by the multiplicity of properties that pull the median down, including:
- Properties located in less attractive areas
- Properties with characteristics far from what buyers are looking for, whether in terms of volume, services, surface, etc.
Some properties combine these two unfavorable factors, which penalizes them even more.
On the other hand, when a property has the most sought-after features by buyers and in the most sought-after areas, its price can be very high.
📈 Prices are rising and living space is decreasing...
Nevertheless, the median price of old homes is rising, from €541,300 in 2020 to €593,000 today, an increase of 9.5% in two years.
However, these figures deserve to be analyzed. Indeed, we note that the prices of old houses have increased, but also that the median living area has decreased. It has increased from 130 m² in 2020 to 112 m² in 2022. The same applies to the median area of the land, which increased from 740 m² in 2020 to 650 m² in 2022. Thus, a house with the characteristics of 2020 would be worth about € 700,000 in 2022, an increase of more than 25%.
APARTMENTS 🏙️
Regarding the apartments, in the old their median price/m² is 4260€. However, this price can go up to 6000 €/m². In addition, the median living area is stable, which is also found in new homes.
In new homes, the price is €5,570/m², which is 30% higher than in old buildings, which corresponds to the average difference between old and new buildings observed at the national level. According to our experience, this price/m² can go up to 7000 € in the east of Gessien. The increase in construction costs has strongly contributed to the increase in the price of new homes.
In new homes, the price is €5,570/m², which is 30% higher than in old buildings, which corresponds to the average difference between old and new buildings observed at the national level. According to our experience, this price/m² can go up to 7000 € in the east of Gessien. The increase in construction costs has strongly contributed to the increase in the price of new homes.
BUILDING LAND🏗️
As for building land, the Chambre des notaires de l'Ain observes a median price/m² of €454, for serviced land. In fact, a well-located plot of land in the Pays de Gex rarely sells for less than €600/m² and can reach €800/m² in the most sought-after areas.
The selling price increases and the price per square meter decreases 📉
According to the table below, there has been an increase in land sales prices over the past three years, while the price per square metre has been decreasing. This can be explained by the fact that the supply of land in 2020 was more in line with the demand for "base plot".
The concept of the basic plot, commonly used in the field of real estate valuation, corresponds to the configuration most sought after by buyers and, therefore, the most expensive per square meter.
In this case, in 2020, a plot of approximately 500 m² met this standard. However, in 2021, the median area of a plot increased to 660 m², placing it outside the category of basic plots of 500 m². As a result, the value of land has increased from €250,000 to €283,900, but its price per square meter has decreased. The following year, the land area decreased slightly, resulting in a decrease in the overall sale price. But the price/m² has increased, as the land area is once again approaching the 500 m² standard sought by buyers.
The selling price increases and the price per square meter decreases 📉
According to the table below, there has been an increase in land sales prices over the past three years, while the price per square metre has been decreasing. This can be explained by the fact that the supply of land in 2020 was more in line with the demand for "base plot".
The concept of the basic plot, commonly used in the field of real estate valuation, corresponds to the configuration most sought after by buyers and, therefore, the most expensive per square meter.
In this case, in 2020, a plot of approximately 500 m² met this standard. However, in 2021, the median area of a plot increased to 660 m², placing it outside the category of basic plots of 500 m². As a result, the value of land has increased from €250,000 to €283,900, but its price per square meter has decreased. The following year, the land area decreased slightly, resulting in a decrease in the overall sale price. But the price/m² has increased, as the land area is once again approaching the 500 m² standard sought by buyers.
OUTLOOK 2023
2023 is shaping up to be a tighter year, with rising borrowing rates and falling demand. In the first quarter of 2023, there was a decrease in the volume of transactions but no real drop in prices. To be continued...
Source: Notaires de France
Source: Notaires de France
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Posted on 04/07/2023 by
Morgane PELLEN
