Fitch Ratings expects home prices in France to grow by 2-4% in 2022, down from its estimate of 6% for this year, before growing only slightly in 2023. 

The firm says that property price growth in France will continue to be supported by historically low mortgage rates, but the limited room for a further interest rate reductions coupled with the regulatory mortgage maturity limitation (of 25-27 years) will weigh on affordability. 

However, the firm added: ‘The shortfall of new construction relative to demand increased during the pandemic, because both new construction and the granting of permits slowed due to lockdown measures. Limits on the availability of raw materials and labour will continue to limit new construction in 2022.’