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Housing in France is Still a Buyer’s Market

Volume XIII, Issue 18

According to the latest study on “housing conditions” published by the INSEE (download the study (in French), as of the end of 2013, indicate that the the housing stock in metropolitan France consisted of 28 million primary residences.

More than half of these principal residences (or 58%) were occupied by household owners who nearly 20% were first-time homebuyers. The flow of recent purchasers slowed down at the beginning of the 2010s: thus 540,000 households became owners of their main residences in 2013, compared to 652,000 in 2006 and 616,000 in 2001.

The average surface area in square meters per dwelling in France was 90.9 m² in 2013 (compared with 89.6 m² in 2001). Housing has averaged four rooms and sleeps 2.3 people.

Each person has averaged 40.3 m² in a housing.

Note: 2.7 million households live in a situation of overcrowding, mainly in multi-family housing in the Paris Region.

One household in four wants to change their accommodations or is forced to change. Even if the comfort of the housing has improved in the last 40 years, 15% of the households surveyed considered their housing as inadequate conditions or very inadequate in 1973, but now only 6% in 2013.

Three main housing defects are: signs of moisture on the walls, thermal insulation problems, and windows allowing air to pass through.

More than half of the households that said they wanted to change their accommodations plan to search for larger housing. One-million-four-hundred-thousand households have filed or renewed a request for public housing in the past 12 months, an increase compared with previous decades.

REPORTING ON PARIS PROPERTY PRICES FEBRUARY 2015

While statistics at the end of February 2015 indicate that sales volumes and prices were declining in the Ile-de-France, there is all indication that a recovery is expected for second quarter, based not on the statistics, but what the industry experts are saying.

sales volumes - France

We are already seeing this — with an increase in interest by the American buyer thanks to the favorable rate of exchange, the low prices and low interest rates.

According to the latest statistics, the decline in the price of housing continues around 2% annualized in the Ile-de-France: the average price per square meter for an apartment at the end of June was 5,290€ and for houses 289,600€ on the average.

In three months (December 2014 through February 2015), the price of resale dwellings decreased by 0.7% (or 0.1% if we take into account seasonality).

France property prices

The price decline accelerated slightly in the capital: in February 2015, the per square meter price in Paris was at 7,920€ (2.9% decline in one year). It declined 1.2% from November 2014 to February 2015.

Of resale properties, 31,110 were sold between December 2014 through February 2015 in the Ile-de-France — a decrease of 14% compared to the same period a year ago (and 13% compared to the average of the last 10 years).

This decline in sales affects all departments of Ile-de-France, with a little less for houses (-10%) than for apartments (-15%) and in the most remote districts.

France property price chart

According to the data supplied by the notaries from the preliminary sales contracts, an overall downtrend will continue on the price of apartments.

Thus, at the end of June 2015, it is predicted that the average price of an apartment in Paris will be about 7,850€/m², and in the Hauts-de-Seine about 5,150€/m². The average price for an apartment in the Petite Couronne will be 4.210€/m².

At the same time, we might see a very slight price increase for the houses. A House would on average cost 288,700€ at the end June 2015.

As noted above, we have seen a serious flurry of activity and good properties are selling very quickly. If you are considering an investment in France, now is the time before the prices start again on an upward trend.

See the full report (in French).

A bientôt,

French Property Insider, Adrian Leeds - Adrian Leeds

Editor, French Property Insider

Email: [email protected]

 

 

 

P.S. Mayor Anne Hidalgo, Paris France: Amend the Paris short-term rental laws and make them fair for all! PLEASE HELP US REACH OUR GOAL: avaaz.org/en/petition/Mayor_Anne_Hidalgo_Paris_France_Amend_the_Paris_shortterm_rental_laws_ Thank you!!

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