Trends Continue: Sales and Prices in Paris Down
Volume XII, Issue 47
We’ve had several clients make a property purchase in the last two weeks, yet the activity of the housing market in the Ile-de-France remains low, as reported for third quarter 2014, compared to the same time last year. The volume of sales is down and prices are down in Paris, too.
Even though the market is sluggish, it’s not altogether halted, thanks to historically low interest rates and the recent discount on capital gains tax which helped maintain an interest by buyers. The end of 2014 is expected to look similar to that of 2013.
The market is a bit confused, but balanced because of both the negative and positive factors. On the positive side, mortgage interest is at an all time low providing more purchasing power, along with a drop in prices making investment look more attractive. Real estate continues to be considered a safe investment, while the shortage of rental housing is consistent. On the negative side, the economics of the average French household is not improving and prices still remain historically high. The new regulations (ALUR) discourage investment in both resale and new properties and furthermore, the additional complexity of making the purchase lengthens the time to arrive at signing the pre-sale agreement discourages some buyers.
In Paris, there is the additional factor of the rental regulations which prohibit rental of property for less than one year. We hope and anticipate a change in these regulations for a more reasonable description of the use of property, so that all owners can enjoy their own investments more fully…but time will tell. According to the predictions, the new year may see relaxed or easing of some of the regulations in order to stimulate the market, but will be limited and therefore the downward trends are expected to continue.
The bottom line is that this is a good time to invest — while the conditions are low!
For more information, download the official pdf reports (in French): Notaire PDF 1
Notaire PDF 2
Notaire PDF 3
or visit the Paris Notaire site.
Note: We are now fully licensed to list and sell real estate in France and welcome your projects, your purchases as well as your search for the property of your dreams. To see our most recent listings and services, visit adrianleeds.com/.
A bientôt,
Adrian Leeds
Editor, French Property Insider
Email: [email protected]
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To read more, click the links below.