Wednesday, August 27, 2008

FRENCH HOUSE PRICE RISES CONFIRMED
Information for Buyers

FNAIM confirms French house price rises-2005 edition

Prices up 16% on last year and doubled over 7 years! The increase in French house prices has maintained steady progress to reach an average 16.1% over the last year.  Over three years prices have risen 47.7%, over 6 years by 87.9% and have doubled since 1997!  

Trends:  All prices have steadily risen during the third quarter of 2004.  Increases of  8.3% over the previous year during the second half of 2001, then by 10.5% during the second half of 2002. In 2003 the rise was 14.6% for the same half, and now it has risen to 16.1%.

Rental sector outstrips housing: As usual it is the rental sector which has seen the greatest increases, being most marked for 2 room units, and only slightly lower increases being seen in the studio and one-room units.  5 rooms and over show a distinctly lower increase. If the rises for houses are less spectacular they are more homogenous through the various sizes, only a 1.9% difference between slowest and fastest rises.

Regional variations:  The greatest rises have been seen in the centre, the Alps, the south-west and in Ile de France, particularly in apartments. Other areas have experienced lower increases, about 3 points lower than the national average. Aquitaine is now seen as a good investment region.

Looking  at 2006 - Prices still climbing!  The president of the Chambre de Notaires of Dordogne says that prices are still climbing in the region, because "demand is greater than supply, despite a record number of new constructions".  Dordogne prices have risen at about 15% over the year, a little more in Perigueux centre and a little less in the north of the department, equally for old or new constructions.  And in the southern Bergerac areas price increases are most notable where the British are buying, with increases of up to 30% in some cases.  Naturally, the old stone houses, which are becoming more scarce, have lead this increase.

Building land too has climbed in price, about 20% overall.  As in most towns we are witnessing now a return of the older citizens, who are selling their houses on the periphery and buying an apartment in the town centre. One other area which is fast developing is the Isle valley, thanks to the new motorway A89.

2007 Update:
Building plots have hit the limelight with steady increases in prices whereas most building prices have seen a steadying or even falling in price.  Coupled with the falling pound this means that NOW is the time to come and view and secure that plot you always hankered after! And remember to book your Euros in advance with a currency dealer for the best rates.