Real Estate Market in France in October 2009

27.10.2009 14:15
Owners of French Property tightened belts, but the positions do not pass. That is how one could describe the real estate market situation in France in mid-October 2009. Indeed, there were objects in a unique price, but in general, property values ??have not significantly decreased. What to expect next?
Now the French property market is a buyer's market. Offers a lot, while wishing to purchase a house but not diminished, but they have become more cautious and demanding, and much longer pick up the object.

Among the foreign buyers of real estate transactions are made in France, mainly British, Germans and Italians. A favorite among the Scandinavian region is the southern coast of France. Keen interest in the Egyptians and Iranians. Also increased demand from Asians - Japanese and Chinese, primarily in real estate in Paris.

Russians for the most part are interested in the capital with its suburbs and the C?te d'Azur. There our fellow countrymen have become familiar neighbors. At the same time when the Russian buyer will acquire housing, for example, in the district of Toulouse, it will be almost a pioneer. Realtors also noted a slight increase in the number of requests from the Russian real estate Normandy.

Common for buyers from all countries has become a trend introduced by the crisis: most of the purchases occurred in order to maintain and further multiply the savings and housing exclusively for the rest sold considerably less.

Where to invest?

Always in the price of real estate in Paris. Regardless of whether the object is purchased for income or as a shelter. Paris officially divided into 20 municipal districts (arrondissements), numbered from the center to the periphery of the spiral. The first ring - the historic center, where most of the monuments and historic buildings. The most prestigious districts of Paris are I, VI, VII, VIII and XVI of the county where historically selilas aristocracy. Eastern areas is much simpler and more democratic.

The price range in Paris is huge: from ? 4 to ? 23 thousand for the quarter. m. Of course, capital is available and a modest home for ? 100 thousand, but it will be a tiny apartment is not in the best part of the city. Typical among the Russians are buying apartments with two bedrooms and lounge, located in a good area of ??the city, valued at ? 500-800 thousand average cost of rent in the capital is ? 21,4 per square. m per month.

Interesting for the purchase of real estate and suburbs of the capital, in particular Levallois and La D?fense. Can get there on the Paris Metro in just a few minutes. According to Natalia Sterlikova the company MADISON REAL ESTATE, now it is growing areas in the development of which the authorities are investing significant sums. In the most luxurious projects may exceed the cost of housing prices and Paris be ? 7-8 thousand for the quarter. m

Popular and small towns within 200 km from Paris (Dreux, Le Mans, Rouen, Orleans, Reims and Amiens). Realtors evaluate them as quite promising. Moved here to live the Parisian pensioners, home buyers here who wants to live in the capital, but still can not afford it. Real estate prices are lower than the capital, often up to 30-40%.

Cote d'Azur or the French Riviera, is considered one of the best places in the world for the rest. Pearls of the coast are the towns of Nice, Cannes, St. Tropez, Antibes, Cap Ferrat, Saint-Raphael.

Selecting the type of housing depends on the purpose of purchase. According to Eugene Uryupino of the company's French Property Group, if you're interested in the preservation and augmentation of funds is to purchase apartments - they are easier to rent. If you intend to buy a home for themselves, the choice should be made in favor of a detached house. But it is necessary to consider that the contents of the house is more expensive because it requires additional expenses for lawn care, pool, etc.

The cost of economy class housing ranges from ? 100 thousand, for example, in Nice is a tiny studio apartment of 25 square meters. m. apartments in new buildings will cost from ? 200-300 thousand And the price of luxury villas on the first line starts at ? 5-6 million Russians have an active interest in the houses on the coast worth ? 800-1 200 thousand such objects, usually include a complete fine finish.

Russians are showing some interest in the region and the French Alps. There are a lot of offers of apartments in ski residential area 18-20 square meters. m. Despite the small size, these apartments are in demand as buyers of such properties is carried out most of the day on the slopes and use of housing, mostly as a place to stay. Plays no small role and value of these objects (from ? 60 thousand). Those wishing to buy more luxury housing opt for chalets - small separate houses, fully equipped for a comfortable stay. "Shepherds" area of ??200 square meters. m at a ski resort Chamonix will cost ? 500-600 thousand

South-West France while inferior to other regions of interest from the Russians. Here are the popular resorts in Perpignan (Languedoc region) on the Mediterranean coast and Biarritz on the Atlantic. Promising direction is the property of Bordeaux. In 2016 plans to build high-speed railway, resulting in a path from Bordeaux to Paris will take only two hours. This will lead to price spikes.

The territory of France, apart from the mainland are also numerous islands in different parts of the world. The largest of these - Corsica in the Mediterranean Sea. Other islands are scattered all over the world. For example, Guadeloupe in the Caribbean, Tahiti and Bora Bora in the Pacific Ocean.

Unfortunately, information about property overseas departments and territories of France-represented in Russia. These areas are still quite exotic. But, according to Tatiana bluebell of companies "Elite-Project", the demand for such objects among the Russians is still there. Typically, housing on the islands are interested in those who have already visited there as a tourist.

Take, for example, French Polynesia (Tahiti, Bora Bora, Moorea and others). Despite the fact that the living standards of the local population remains low, the tourists get a high class service. On Bora Bora house area of ??100 square meters. m, with two bedrooms and a plot of land in five hundred parts can be purchased for ? 284 thousand in Moorea A villa of 140 sq. m on the coast worth ? 356 million with it, it will include five rooms, bathroom, kitchen, garage for two cars and a nine-hectare plot with a garden.

Investing in real estate island is also a very profitable investment, because the tourists are popular rented villa. For example, a house on the island of New Caledonia can be turned in for ? 200-300 per day.

In commercial real estate France one of the most interesting proposals concerning hotels. Now you can meet quite rare ad for the sale of small hotels at a much lower price than previously. For example, for ? 3-4 million in the Antibes or Cannes. Also still interested in a cafe.

Real Estate Market in France: Yesterday and Today

The current crisis is the second in the French property market over the past two decades. In 1992-1998 the country has already passed a similar path. Then the stability of economy and simplicity of obtaining loans have led to extensive real estate speculation, and prices increased on a monthly basis. The result of the crisis was the collapse of prices and problems with obtaining a mortgage.

It is thanks to the lessons of the crisis mid-1990 France was prepared to present difficulties. In particular, the law was amended to protect consumers, changed the tax laws and more stringent conditions for granting loans.

On different segments of the market crisis has affected in different ways. In the first quarter of 2009 compared to the same period of 2008, apartment prices fell by 3.7%, at individual houses on 7,7%. The prices in Paris are kept fairly confident.

A similar situation with luxury real estate. Ancient castles and vineyards all over France still find a buyer. As well as villas on the Cote d'Azur. According to an analyst at Knight Frank ZAO, during the crisis, C?te d'Azur has remained one of the few regions in the world with a stable situation of real estate. "Elitka" of the same London suffered more: according to the company Babichev Consultants, from September 2008 to March 2009 in London is more expensive items? 10 million lost 10-15%.

Nevertheless, the crisis - actual time for the auction. However, according to Eugene Uryupino, the seller will provide you an additional discount, to a large extent depends on whether it is European. Since almost a national trait of many residents of European countries is the habit of saving. Therefore, to sell his property at knockdown prices they are not in a hurry. But there are, and individual proposals. For example, if the original villa is put up for sale for ? 6 million customers and is not, as a result it can be sold to someone who will offer ? 5 million or, for example, selling apartments worth ? 2 million discount may well make a ? 1,5 -1.8 thousand

According to Irina Duport from the company IMMOCONCEPT, France real estate market began to emerge from the crisis. His influence in some measure turned positive, even as sales rose: buyers have to acquire property that is never fall in price. And if earlier, many market participants expect prices fall significantly, it now becomes clear that real estate values ??in some areas and especially in the rare objects not only decreased but increased. Thus, the "French resistance" of the crisis was perhaps the most successful among the other European countries.

Market Outlook

Until late 2009, experts do not expect any significant changes in the market. Here's how prices will behave in 2010, estimates are more ambiguous. According to forecasts of the National Federation of Real Estate Agencies France (FNAIM), prices on average across the country will fall by 5%.

At the same time, the Cote d'Azur forecasts are favorable. According to Eugene Urupina, even in the worst case scenario, the maximum fall in prices will be only 5%. First, the crisis barely affected by the solvency of the buyer real estate. Secondly, in the region demand exceeds supply: according to some estimates, this "missing" about 20 thousand objects. After the crisis, many developers have stopped building, while the demand remains.

Insufficient supply will affect prices in the whole of France. According to Irina Duport, lack of new facilities will lead to a revival of the market in the spring of 2010.

Content tags:
Did you like the material?Subscribe to our newsletter
Your comments:
Your opinion will be the first. Thank you for reading this article. I wish you happiness! Please share your opinion in the comment below.