In terms of real estate, the French have the highest number of debtors in Europe.

According to a study published by the Banque de France, debt contracted by French owners increased from €400 billion in 2003 to €1,400 billion at the end of 2021.

A contradiction. In-spite of this Decline observed for several monthsHome real estate lending has grown significantly in nearly 20 years. Particularly because buyers under influence were able to benefit from low lending rates. an accommodative monetary policy During the last decade.

The debt contracted by French owners thus increased from 400 billion in 2003 to 1,400 billion (in current euros) at the end of 2021. one discovery Published by Banque de France. This is an increase of 350%. If German household borrowing amounted to €1,600 billion at the end of 2021, the growth over 20 years (+60%) is much less dazzling. Furthermore, in Spain and Italy, real estate lending remained almost stable.

The percentage of French people in debt has remained stable at 25% for more than ten years, but they have tended to take on larger amounts of debt. Especially since this apparent stability obscures “contradictory growth according to income levels”, the Bank of France underlines. The increase is more notable for those with the highest incomes.

Real estate loan of 97,000 euros

In France, the average amount of real estate loan for households who still have to repay part of their loan is about 97,000 euros in 2021, compared to 92,000 euros in 2017.

In Germany (85,000 euros in 2021, compared with 87,000 euros in 2017), Italy (85,000 euros, compared with 72,000 euros four years ago) and Spain (69,000 euros, compared with about 70,000 euros in 2017), families So they have lower average debt than French owners.

Real Estate Market: Better Lending Conditions - 11/04
Real Estate Market: Better Loan Conditions – 04/11

French households took advantage of the low rates to expand their real estate assets, along with an increase in rental investment and second homes. Results: Who held 63% of French real estate debt Richest 25% in 2021, Compared to 60% four years earlier in 2017.

A debt that grows faster than income

Furthermore, economists at the Banque de France have pointed out a peculiarity that affects all real estate loans.

“Household debt relative to their income is above other countries,” underlines Frank Sedillot, Deputy Director of Monetary and Financial Statistics. Echoes,

In contrast to the trend seen among our neighbors since 2010, where this ratio shrank or stagnated, in France it continued to increase. In 2010, property debt was equivalent to six months’ income on average, while in 2021 it reached double that, or close to 83% of income.

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Business Cyprus: Real estate prices fall – 01/03

It would be very easy to view this phenomenon as a simple increase in the price of the stone. If housing prices have increased significantly since 2010, leading to buyers taking on more debt, a similar trend has been seen among our neighbours. Real estate prices have increased even further in Germany.

A second hypothesis was considered: credit would then have been used to compensate for wage stagnation. But this does not even stand the test of statistics. Spain has seen a decline in household real estate debt while wages have not increased.

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