Real estate in Toulouse: key figures and trends in 2024

Publish the 24 April 2024 in Latest News

Nicknamed the “pink city” after the terracotta brick walls of its houses, Toulouse is a popular destination for its charm, economic dynamism, quality of life and the legendary friendliness of its people. France’s 4th largest city, Toulouse is a major economic and cultural center in the Southwest. In this article, we take a look at current real estate trends in Toulouse, current prices and the outlook for real estate in Toulouse.

The world’s aerospace capital and a student city par excellence, Toulouse is France’s fastest-growing city. Renowned for its exceptional historical heritage, renowned universities and easy access to both the sea and the mountains, Toulouse attracts many new residents and real estate investors every year.

Property market trends in Toulouse

The real estate market is currently experiencing a major crisis. Also, the sharp rise in interest rates has led to an unavoidable drop in transaction volumes. The FNAIM (Fédérationtendance-immobilier-real-estate-toulousea-toulouse Nationale de l’Immobilier) confirms this decline in volumes, estimating that 875,000 transactions for older homes will be completed by 2023, a 22% drop compared to 2022. Added to this are more stringent energy-efficiency renovation obligations, and a greater tax incentive for furnished rentals. But the real estate market is slowly recovering, and the first positive signs are already visible in Toulouse.

Property prices in Toulouse

Property prices in Toulouse have risen steadily in recent years, but are now slowly beginning to stabilize. In 2024, the market remains tight, with sustained demand and limited supply, particularly in the central districts. According to the FNAIM index, the average selling price is €3,521/m². In 12 months, this index has fallen by 1.8%, compared with 0.5% over the last three months.

As in all regions, price differentials between properties vary not only by neighborhood, but also by property type. On April 1, 2024, the average price of an apartment was €3,388/m², while buyers paid an average of €4,216/m² for a house.

But prices differ depending on the type of property you’re looking for. Here’s an overview of average prices by property type:

  • T1 apartment: €4,080/sq.m
  • Apartment T2: €3,444/sq.m.
  • Apartment T3: €3,209/sq.m
  • Apartment T4 and +: €3,124/m² (including VAT)
  • House T3: €4,751/sq.m.
  • House T4: €4,057/sq.m
  • House T5: 4.082 €/sq.m
  • House T6 and + : 4.228 €/m²

Sales update from Mercure Forbes Global Properties Toulouse agency

Despite the obvious crisis, Mercure Forbes Global Properties Toulouse recorded 28 sales by the end of 2023. Among these real estate transactions, rural properties were particularly successful, with 21 sales, including 15 under exclusive mandate, 5 under simple mandate and 1 under search mandate.

Here’s a breakdown of the 21 transactions by property type:

  • 6 sales of character houses,
  • 4 sales of manor houses,
  • 3 sales of contemporary houses,
  • 2 sales of land/forest,
  • 2 sales of a château,
  • 2 sales of a manor,
  • 1 sale of a farm building,
  • 1 sale of a property

Whether it’s for a primary residence, a second home or an investment, houses on the outskirts of Toulouse are highly sought-after. This can be partly explained by the fact that the French are keen to find properties with large exteriors so they can enjoy the countryside, ample space to accommodate friends and family, and peace and quiet away from the hustle and bustle of the city. What’s more, rural homes are generally more affordable than city properties. In fact, the average selling price for these 21 sales was €620,200.

There were 6 sales of downtown residences, including 3 townhouses and 3 apartments. Four of these transactions were exclusive mandates and the last two were simple mandates. The average price of these six sales is €764,167. Looking for a property to buy in Toulouse? We invite you to discover all our listings of prestigious properties for sale in Toulouse.


Toulouse’s most sought-after neighborhoods

Real estate prices differ dramatically from one neighborhood to the next. While in some areas of Toulouse, prices are sky-high, in others they are much more affordable. For example, the average square meter for an old apartment in Capitole can quickly reach €5,000, while in neighborhoods such as Empalot, Papus and Mirail, it drops to around €1,500.

Among the most attractive neighborhoods is Jean-Jaurès, the historic city center, prized for its authentic charm and proximity to shops and public transport. Jean Jaurès is one of the pink city’s most sought-after neighborhoods, not least because of its strategic location close to numerous schools, bars, restaurants, the metro, buses and shops. The Côte Pavée district is also very popular with couples, students and families. Highly residential, it is home to a multitude of villas, townhouses, residences and shops, as well as numerous private schools, including some of the most sought-after in the Ville Rose, such as Saint-Joseph and Le Caousou. Already well served by bus lines, the opening of a metro station in the district should lead to a marked increase in demand for housing, as well as significant added value for existing properties.

Residential neighborhoods such as Saint-Cyprien and Saint-Michel are also highly sought-after for their friendly atmosphere and green spaces. Pleasant to live in, these two neighborhoods offer many advantages: shops, tramway, historic monuments, schools and many cultural venues.


Property price trends by neighborhood

According to the latest figures published by Insee at the end of September 2023 on property prices for existing homes, a further decline in the average price of -1.1% in the 3rd quarter, brings the cumulative fall to -2.1% since the high point reached in the 4th quarter of 2022. The most expensive neighborhoods, i.e. those where the square meter exceeds €5,000, are the hardest hit by this real estate crisis.

These include Saint-Etienne with a price of €5,530/m², Capitole with €5,280/m² and Saint-Georges with €5,190/m², one of the most popular neighborhoods for young Toulouse residents. Last June, six neighborhoods were considered the most expensive in the city, but three of them have seen their prices drop in 2023, taking them off the list. These were the Carmes district, with a price of €4,950/m², Saint-Aubin-Dupuy with €4,940/m² and Saint-Cyprien with €4,640/m².

It was the first district on the Left Bank to enter the pool of areas with prices in excess of €5,000″, emphasizes Frédéric Giral, President of the Chambre interdépartementale des notaires.

Other Toulouse neighborhoods with prices per square meter between €4,000 and €5,000 include Chalets (€4910/m²), Matabiau (€4770/m²), Le Busca (€4630/m²), Compans (€4430/m²), Saint-Michel (€4290) and Amidonniers (€4200/m²).

For those wishing to purchase an older apartment between €3,000 and €4,000/m², it’s important to note that prices are falling for almost half of them. The most significant declines concern five neighborhoods in particular:

  • Château-de-L’Hers (-5.9%),
  • Guilheméry (-5%),
  • Patte d’Oie (-3.5%),
  • Casselardit (-3.6%),
  • Marengo-Jolimont (-3.6%)

Smaller decreases were recorded in four other neighborhoods: Saint-Agne (-1.7%), Rangueil (-0.9%) La Terrasse (-0.6%) and Les Minimes (-0.1%). Other neighborhoods were less fortunate, with some posting double-digit declines e, 2023 compared with the previous year, such as Bellefontaine (-9.9%), Toulouse’s least expensive district, la Fourgette and Juncasse-Argoulets (-9.1%), Croix-de-Pierre (-7.9%) and la Faourette (-6.6%).

Sources FNAIM and Capital

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