It is predicted that property prices in France will continue to fall in 2013, welcome news for potential buyers who plan to purchase a property this year, particularly when combined with the historically low mortgage rates that are currently available. FNAIM ((La Fédération nationale de l’immobilier) predicts a drop of up to 2%, Orpi suggests 3% and Standard and Poor’s predicts 5%.
• Property transactions in France fell by 25% in 2012 according to the latest figures from FNAIM, the French estate agency federation
• Brittany and Normandy were the most affected regions
• The difference between asking price and sale price was 5.08% in 2011, but this increased to 5.46% in 2012
• While the number of transactions fell in 2012, prices increased overall by 0.8%
• The biggest rise in prices was seen in Ile-de-France, where they increased by 1.5%
• Prices climbed 0.7% in Provence-Alpes-Côte d’Azur and Champagne-Ardenne, 0.6% in Upper Normandy and 0.5% in Languedoc-Roussillon
• The biggest drop in prices occurred in Lower Normandy and Brittany, falling by 5.7% and 5.3% respectively
• Prices fell by 4.4% in Poitou-Charentes, 3.3% in Pays-de-la-Loire, 2.7% in Midi-Pyrénées and 2.5% in Centre and Lorraine
• The smallest drop occurred in Aquitaine, where prices fell by 0.2%
• Rhône-Alpes is bucking the downward trend and has seen an increase in both demand and sales
• Ski resorts are faring particularly well. The price per square metre in Méribel has risen by 15.1% over the past year, while the average price per square metre in Morzine increased by 12.8%
• The trend witnessed in the Rhône-Alpes region is expected to continue in 2013, but elsewhere in France it is predicted that prices will continue to fall, although not by a significant amount
France remains the most popular destination to buy a property abroad and French property continues to represent a stable investment.
As the world’s leading tourist destination the rental potential of French properties is strong, providing a source of income and a further return on investment.
Take a look at our summary of the Notaires de France property trends report