French property prices increase

French property PACA 2

French property prices in the first quarter of 2010 appear to have risen significantly compared to the same quarter in 2009. The figure, estimated at 7% by the Fédération des promoteurs constructeurs (Federation of house builders) saw increases in the prices for new build property at 3.6% in Lyon, 8% in Paris, Ile-de-France and an impressive 11% in the city of Marseille. The average price for a one bedroom apartment stands at €168,858 and a 4 bedroom house at €512,412. Overall, compared with the first quarter of 2009, sales of new homes have increase by 18%, with the numbers of sales doubling in the urban areas of Paris, Lille, Toulouse and Lyon.

It is always important to check which Euribor rate as well as the margin added to your loan and to compare like for like as a loan with a lower margin might be based on the much higher 12 month Euribor.

The FNAIM (Federation of French Estate agents) also published is quarterly report in May painting a slightly different picture, though it does take into account the whole of the market, not just new build prices. The figures published this month show an overall drop in average French prices of 2% since the same period last year, 1.9% for apartments and 2.2% for houses. The Paris property market has returned to growth with a yearly increase on average of 2%, which mirrors the growth seen for the whole of France with an increase of 1.8% since last quarterly result were published.