Thursday, May 27, 2010

Sudden surge in new-builds.......

Fifty-four new apartments and villas, out of a total of sixy-two available, were sold in a single weekend recently in France. A sign that the property market is picking up?

Certainly the predictions are optimistic according to various experts quoted in Le Figaro who cite another example of nearly 70% dwellings sold on a development by Nexity, and a rise in building permits of 25% recorded in March and April alone. In the first quarter of 2010, sales of new developments have risen by 5.3% against a dramatic 59% fall in 2007/8, with around 75% new starts already recorded in 2010.

This year sales of new-builds are forecast to reach 106,000 in addition to 100,000 much needed social housing units.

Already there are signs that new property prices are rising, up by 8.5% for studios and 8.9% for properties of four rooms and above. Reasons given are the need for new-builds to comply with the new BBC norms ('batiment basse consumption') for low energy consumption, with tend to add around 10% to building costs.

Source: Le Figaro 27 May 2010.