Consulting firm CB Richard Ellis has published another study on the state of residential real estate market in the country. Market is characterized by a number of positive trends in consumer activity and the level of prices.
As the findings of the study, in I quarter, prices for primary housing in France increased by 6,8% relative to the same period last year. For comparison, in I quarter 2009 level of annual increase was only 0,3%.
Thanks to record-low interest rates, keep on for several months (for example, 3.5% for mortgage term of 15 years), as well as tax breaks sales of primary residential real estate in the country remained stable at a high level. At the same time, a significant increase for January-March was not observed, whereas last year the number of transactions increased by 34%. The largest consuming activity is listed in Paris, as well as in resort regions Rh?ne - Alpes and Provence - Alpes - C?te d'Azur.
Further, the number of transactions in the primary housing market could fall due to increasing mortgage rates and tightening rules for granting tax incentives. Ultimately, this would have a deterrent effect on the price rise. However, as experts believe, "growth centers" will remain: so in Paris, according to forecasts of local associations of notaries, the value of residential real estate will increase in 2010 to 10%.
In the secondary market, the number of housing sales started to fall last year: the reduction was 8.7% relative to 2008. This was associated with high unemployment and fragile economies. Many buyers have taken a wait: a large proportion of those who acquires a "secondary housing, want to change the housing, and in a similar situation for them makes no sense to rush into buying.
Currently, the French economy shows signs of growth that is reflected in the gradual strengthening of sales on the secondary housing market. Prices are also rising, albeit at a moderate pace. In I quarter they rose relative to the same quarter last year to 1,8% in the segment of private homes and at 1% - in the segment of apartments. Geographically, the highest growth registered in the capital region Ile-de-France.
In 2009, the level of mobility of the population fell to its lowest level over the past decade. As mentioned above, the population in times of economic recession is not so readily changed residence, as in the pre-crisis years. As a result, the French market rent stagnated, and this trend is prevalent so far.
Rental rates occurred only in the most active and markets - such as Paris, where the average rent rose to ? 28,8 per square. m per month and Nice (an average of ? 16,1 per sq. m per month).