A New Record Set for the Cost of Property in France!
The typical price of property in France has actually set a new record throughout the 4th quarter of 2010, with an increase of 8.7 % on the year, announced Century 21, among the world's biggest estate company networks with 117,000 representatives in 68 nations.
As compared to the very first term of 2008 where the greatest average was 2 549? per square metre, we've seen approximately 2 580? in the 4th quarter of 2010. "The decrease in prices recorded during the monetary crisis which lasted from the 2nd semester of 2008 to the first semester of 2009 has actually now entirely faded", observed Century 21.
This brand-new record masks extensive differences between Paris and its suburbs, where rates have climbed a lot in 2010, and the more moderate rest of the nation. The average price rose by an average of 18.46 % over 12 months in Paris, and by 7.8 % in the capital's suburban areas, according to Century 21's figures, based upon the 49, 700 deals the network performed in 2010. However particular areas saw their rates fall in the second term of 2010, such as Alsace, Burgundy and Nord-Picardie.
For the year in general, Haute-Normandie is the only area to have seen its prices fall (-1.9 %).
Century 21's figures concerning Paris verify the predictions of the Chambre des notaires, who had anticipated a 20 % increase throughout the years in December. The records do mask a clear deceleration in the 2nd semester of 2010, a period throughout which prices rose by less than 1 % compared to the first 6 months of the year. Thinking about the frailty of households' solvency and in spite of the brand-new mortgage loan with strengthened 0 % interest, Century 21 is staying sensible.
The network approximates that the possibility of occur in house prices in france property magazine of in between 2 to 3 % should not be marked down, but notes that the evolution of the market will generally depend upon interest rates.
"This increase in costs is very closely linked to and depending on interest rates as these days, most other levers permitting access to housing have been called upon already," concludes Century 21.