Lyon’s real estate market in top form
After a relatively slow 2014, the property market in Lyon has sustained growth this year, due mainly to falling house prices. However, the region’s real estate didn’t severely suffer from the slump incurred by the rest of France, thanks mainly to the Lyon metropolis’ resilient economic market.
The Lyonnais real estate market is in good shape, with a net increase in transactions in the past few months. Property advertised at sound prices is selling in reasonable time frames and while the city-center remains expensive, prices in the southern and northern districts are falling, attracting bargain-hunting property buyers.
Alongside being the second largest metropolitan area in France — after Île-de-France — Lyon is also renowned for its rich history, architectural landmarks — the city is listed as a UNESCO World Heritage site — and for being the place where the Lumières brothers’ invented the cinematograph.
Having seemingly sidestepped the economic crisis, the capital of the Rhône-Alpes region and the Rhône department’s economic performance is the envy of many other major French cities. The city is home to dozens of industrial and service groups, such as Renault Trucks, Hewlett-Packard, video game producer Electronic Arts and the Sanofi Pasteur laboratory and in 2014 alone, 80 companies settled in the area, creating around 2,000 jobs.
Fifth largest regional GDP in Europe with 2.5 million professionals and leading teaching and research center with 130,000 students, Lyon didn’t suffer severely from the housing slump which affected the rest of France for three years. According to the Federation of Real Estate (Fnaim), property sales increased by 3.1% last year, compared to the national average of 0.3%.
In the city center, property prices have remained at high levels, with an average of 3,300 euros per square meter. In the prestigious areas such as near the Tête-d’Or park, or around the Bellecour and Carnot squares, median prices exceed 4,500 euros per m2.
Conversely, prices are falling in the 7th and 5th arrondissements — especially in areas concentrating property dating back forty years or more. In these areas, buyers can find 1970s property for less than 2,800 euros per m2.
Recent data from the Fnaim shows a 4.4% price drop on apartments and a 5.6% decrease since June. This factor paired with historically low interest rates is attracting buyers en masse to the City of Lights.
Photo credit: Wikimedia Commons / Calips