French Property News | French property prices cool but core markets hold their ground17th May 2013
Recent reports from the FNAIM (National Federation of French Real Estate Agents) have shown that property prices across France have cooled in the first quarter of 2013 following steady increases throughout the years before. However, prices the country’s core markets are holding firm.
FNAIM figures indicate that prices cooled by 2.8% in Q1 2013 compared to the previous quarter, with prices in Ile de Paris dropping by 3.3%, its first regional decline for 15 years. However, figures from the Chamber of Notaires show that prices in central Paris have been much less affected with prices only dropping by 0.7% between January and February.
“National average prices have dropped, but just like London, France’s core markets such as Paris have held,” commented Nicholas Leach at Athena Advisors. “Ile de France is a region more than seven times the size of Greater London so regional figures need to be looked at carefully. Residential and commercial property in Central Paris within the peripherique ring road continues to remain in high demand and this is unlikely to change.”
“Other core markets like the Alps are bucking the national trend too, with developers in some resorts increasing prices by anything up to 5%,” added Leach. “These micro markets, like in the Alps and the Cote d’Azur are underpinned by a more powerful force than that of the wider economy; international tourism money. The national economy maybe experiencing a stutter after 2012’s change of government and Eurozone issues, but this will not deter tourism. France is on track to be the most visited country in the world for the fourth year in a row and its Cote d’Azur region alone accounts for 1% of the worlds tourism market.”