Prices for residential property in the French capital in the III quarter of 2010 rose by more than 10%. In the coming year, experts do not expect any such rapid price growth, nor to reduce them.
One of the main causes of price rise - the lowest interest mortgage rates since the Second World War.
Apartments in Paris and its suburbs rose in price throughout the year, the peak growth occurred in the third quarter. Average cost per square meter in the capital stock? 6381, and according to the National Association of Estate Agents (FNAIM) on an annualized basis grew by nearly 10%. The National Institute of Statistics and Economic Studies (INSEE) estimate that housing in Paris in the third quarter of 2010 increased in price by almost 14%.
In the Greater Paris, the average cost of housing in the III quarter of last year increased by 12%, which amounted to about? 5 thousand per sqm The average price of apartments in the area of so-called "small ring" (the next three to Paris department) has increased by 11% and amounted to about ? 4 thousand per sqm In the area of the "big ring" (another four departments), the square meter price increased by 9% and the average price of the order? 3 thousand per sq. m.
In the rest of France did not grow so much. Throughout the country, the average cost of housing in the III quarter of 2010, according to FNAIM, increased by only 0.6%. Mansions went up a little bit more - 1% over the same period.
Experts attribute the price situation that the economic crisis has forced investors to reconsider their interests: Real estate in the countryside no longer seems to them to profitable investment due to the unstable economic situation in France.
However, in 2011 the rapid rise in the Paris real estate stops, informs portal Global Property Guide. The French Government have a policy to reduce government spending, plus last year's nationwide strike of workers and students led to a decline in business activity in the country.
Price reduction experts are also not expected due to the stable situation in the mortgage market. While 80% of real estate in France to take her to the owners of the mortgage, almost all mortgages issued at fixed interest rates. Therefore, during the recession of 2008-2009, the mortgage market in France grew by almost 4% and today it is the third largest in the EU after the British and German. Mortgage rates in the country dropped an average of 3,3%.
French real estate market boom lasted from 1997 to 2007. Low interest rates on loans increased housing costs, and prices reached a peak in 2004. Growth stopped only by 2008. Then, taking into account inflation, real estate fell by 12% under the influence of the global financial crisis. Total for nine years (from 2000 to 2009) prices for apartments in France increased by 110% (in Paris - 115%).