Fall in Property Prices: Buyers are coming back

Published on 30 Septembre 2015

Low property prices and borrowing rates have created an ideal climate for buyers in France…

THE PRICE FALL IS CONFIRMED

According to a report conducted by the Notaires de France, property prices in France have seen a new drop of 2% this year, continuing the trend that began at the end of 2012. The drop is more pronounced for apartments (-2.7%) than for houses (-2%). Different property networks have also confirmed this trend: prices altered by an average of -2.6% for Century 21, -2.5% for Crédit Foncier and some -2.3% for Laforêt. 

BUYERS ARE REGAINING CONFIDENCE

This price fall reflects the recent increase of purchasing intentions amongst individuals; all the more so now that levels are close to the lowest in history, thus strengthening purchasing power. Being able to borrow at a low rate remains a decisive factor and continues to have a leverage effect on the market. According to the ‘Observatoire du Moral Immobilier’, some 72% of people considering buying a property in France are “convinced that now is the time to buy” compared with just 59% a year ago. In addition, 78% of them believe that the current credit rates in France are attractive.Furthermore, just 36% believe that it is difficult to obtain a loan, compared to 50% last year.

The banking sector also has confirmed this trend. La Caisse d’Epargne recently announced an increase of 25% of its lending for property investment as of January 2015, confirming that 2000 more loans were made this year than during the same period in 2014.

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