Friday, April 5, 2013

French property prices in 2013

The regional chambers of Notaires de France have recently published statistics of property transactions in 2012 and their forecasts for trends in 2013.

- Overall sales of older properties were down by 12% in previouis years, with prices reflecting an average 6% drop (well within the usual margin for negotiation between vendor and purchaser).
- Within Pyrénées-Orientales (French Mediterranean coast) average price reductions were 6% for apartments and 8.6% for houses. This contrasts with the 'unrealistic' rise in prices witnessed since 1990 of 87.6% for apartments and 69% for houses!
- Notable variations within the region include properties in and around Perpignan and on the Mediterranean coast, where prices have generally stayed firm.
- Smaller properties such as studios can cost up to 5000 euros per square metre, and two-room properties average around 3000 euros.
- Sales of some 'second homes' - particularly small apartments located in older buildings - have slowed down but prices have not reduced significantly.
- The Report blames the uncertainties about the Hollande governments taxation policies - still undecided - on the purchase and sale of holiday homes, as both vendors and potential purchasers adopt a wait-and-see attitude.

Source: Chambre des Notaires des Pyrénées-Orientales

Note that in some sectors, such as Perpignan centre, there is a shortage of larger apartment properties suitable for 're-composed' families (after divorce or separation), where each partner may have one or more children from a previous marriage, and need three or four bedrooms, as well as larger living areas. P-DdeR.