French Property market experiencing downturn

  • 11 years ago
  • Uncategorized

The French property market experienced a 1.1 per cent fall in the second quarter of the year (2013), but results varied considerably from region to region.

That’s according to a new report from Notaires, which confirmed that the biggest decline has been recorded in Pas de Calais, which took a dive of 10.7 per cent – followed closely by the Indre and Loire. They fell 8.9 per cent and 7.4 per cent respectively.

Another report conducted by Standard & Poor’s (S&P) has found that this fall in house prices in France is set to continue over the coming years. Despite the rest of Europe experiencing a more stabilised market, the report says that tax hikes, increased fees and rising interest rates will all ensure the property slump continues.

Since the global economic downturn in 2008, French house prices had managed to stay relatively high despite decline in house sales, reports. Despite this, S&P has predicted that the fall in house prices will accelerate to four per cent in 2014, from three per cent this year.

Whilst referencing a French mortgage insurance group, S&P told “The modest correction so far means that homes remain expensive in terms of affordability.”

Compare listings