French Property Prices set for stable year

French property 3

French property prices rose 2% in 2010 and a further 7% in 2011 after drops of approximately 3.5% and 5% in 2008 and 2009 respectively. This means that we essentially back to where we were in 2007 after 10 years of uninterrupted rises. The number of transactions reached record numbers in September 2011 with over 830,000 transactions recorded. This level of transactions was greatly supported by the historically low interest rates and government tax incentives to buy new build property. We will not see such support in 2012 as interest rates are now higher and many incentives have ended. Add to this the stricter criteria in evidence for obtaining credit many anticipate slowdown in the numbers of transaction, with some predicting falls of up to 5% if the economy continues to slow down. Given the extra strong performance in prime locations such as Paris and the PACA region should continue to grow.

Highlights 2011

Apartments across France rose 8.9%

Houses rose 6.20%

Paris apartments rose over 22%