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  • > French property market 2013 outlook (Le Figaro Jan 6 2014)

French property market 2013 outlook (Le Figaro Jan 6 2014)

Janvier 13, 2014

French resale property market trends at - 2% while prices remain unchanged in the new build.

According to estate agents,  price of existing homes fell slightly ( from 1.6% to 3%) in France in 2013. And we should expect a similar decline this year.

Yes, the prices of apartments and old houses are down. No, they will not collapse. This is the feeling of estate agents at the time to share their activity in 2013 and forecasts for 2014. Specifically, they all saw a moderate decline in property prices in France last year. A decline in a range of -1.6% according to Guy Hoquet agences network  to - 3 % according to Orpi network . Century 21 indicating a decline of 1.8 % and Laforet network of 2% .

Vintage 2013 has confirmed the downward trend in property prices tentatively sketched in 2012 with a decline in rates close to 2% . As a result, property prices in France remain high: they have increased by almost 7% since the crisis in 2008 after rising sharply ( +79 %) between 2000 and 2007. According to Laforet,  square meter is on average 2,871 euros. With a better valuation of apartments ( € 3,622 ) vs homes ( € 2,063 ) .

Nevertheless, unlike rating agencies, property estate agents do not believe in a significant drop in prices this year. They expect the same scenario again in 2014: that prices will fall at the same rate as during the previous two years . " If interest rate mortgages remained stable, there will be less than 2 % decline, says Laurent Vimont , CEO of Century 21 .

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