According to the latest figures to be published, residential property prices in France remained stable in the third quarter of 2010, with significant increases being recorded in Paris and other areas – including our own Cote d’Azur.
The figures from FNAIM, the National Association of French Estate Agents, show that some regions in the country, notably in Normandy, Picardie and Lorraine, are still seeing prices drop, but that the overall outlook is positive.
The FNAIM say that prices rose between 2.5% and 6% in Paris and the Ile de France, with increases also being seen in Aquitaine, Brittany and PACA (Provence and the Cote d’Azur – i.e. our region), while in Normandy, Picardie and Lorraine, prices fell between 2.5 and 6%.
The FNAIM is now predicting that prices will rise 2% to 3% this year when final figures are in. NB this is a country-wide average. This figure is compared to their earlier forecast of a 2% – 3% decline in prices in 2010. FNAIM also believes that sales will increase to 700,000 this year, compared to 600,000 last year, and 800,000 in 2007.
The fall in mortgage interest rates, which at an average of 3.3%, are lower than they have been since the aftermath of World War II over fifty years ago, is one of the main reasons for the upturn in fortunes in the French property market. Another reason is that there have been few if any repossessions. This is due to the French lending laws which prohibit mortgage lenders from allowing their borrowers to over-borrow against their net disposable incomes as proven on their application.
The end of tax reliefs and breaks for new property purchases and investments on January 1st is also likely spurring people into purchasing now the market looks to have bottomed in most places. NB these tax reliefs relate to new property only and is an incentive for new construction throughout France.
Price rises in Paris and the Ile de France are confirmed by figures from the French Notaires, who recently reported a 6% rise in prices in Q2. and meanwhile one of France’s largest chain of estate agents issued a more detailed report, stating that prices are stable, with the exceptions of: Burgundy, Auvergne, Champagne Ardenne, and Lower Normandy where they are down 5.9%, 4.5% and 2.25% and 2.27% respectively.
As far as the French Riviera is concerned, we continue to see a firming of the market so we know the 06 region (Cote d’Azur) will show increases for the year when the figures are announced early 2011.
I continue to be busy with buyers – so contact me, Jackie Pressman of French Riviera Property Search and I will assist you to find the home of your dreams in our beautiful area.
Today the sun is shining brilliantly, the sea glistens and the sky is vibrant blue. Come join us.