I was just today reading a report on possible property prices in France during 2013. Unfortunately it is France-wide and we know that Paris and the Cote d’Azur are a different market to the rest of France, but read what they have to say:
News : Property prices in France will continue falling in 2013, according to a recent press release from FNAIM (La Fédération nationale de l’immobilier), the French estate agency federation.
Combined with the historically low mortgage rates available, potential buyers are likely to find a bargain.
FNAIM have predicted a fall of 2% this year, while Orpi and Standard and Poor expect drops of 3% and 5% respectively.
Sales also fell during 2012 – transactions were down by 25%, with Brittany and Normandy most affected.
However, overall, prices were up 0.8% last year compared to 2011.
The biggest rise was in lle-de-France, which saw a 1.5% increase in prices; this was followed by Cote d’Azur, with 0.7%.
Those with the biggest drop were Lower Normandy with 5.7% and Brittany with 5.3%.
Prices also fell in Poitou-Charentes, Pays-de-la-Loire, Midi Pyrénées and Centre and Lorraine.
The asking and sale price difference also increased from 5.08% in 2011, to 5.46% in 2012.
Despite this negativity, the Rhone-Alpes and ski resorts such as Méribel and Morzine are seeing much better figures.
While the Rhone-Alpes has seen an increase in demand and sales – a trend expected to continue – the price per square metre has risen by over 10% in both ski regions.
With French property continuing to produce stable investments, investors are sure to see high returns, particularly for rental properties.
Andy Duncan, editor of Living France magazine, said that the prices have been falling because the market is experiencing a correction. “The massive upward curve in property prices between 1998 and 2007 were always going to slow at some point,” he said, “and when sellers start pricing their properties correctly, the market will start moving again.”
While he predicts prices dropping in the short term, he believes that they will stabilise, calling the situation a “slight adjustment.” “People mustn’t lose sight of the fact that house prices did actually increase last year,” he added.
He also pointed to the natural appreciation in housing values; properties bought in 1998 are still worth far more now than they were then.
“British buyers of French property tend to buy out of love for the country, rather than to make a quick buck,” said Mr Duncan.
“It is not an issue if they have to keep the property for a few years before they start to see a sizeable appreciation in value.”
Contact me, Jackie Pressman of French Riviera Property Search – and let’s talk about your own desires and dreams of having a place in this beautiful area.