The situation in the property market in France is still depressing: the low loan rate (December 2012 – 3,23%, a historic low) did not increase the number of trades.
Specialists of portal Les Echos asked the question: “Can a sharp jump in price seen as the real estate bubble?” Housing Minister Cécile Duflot tends to a positive answer, because “in a crisis situation in the market may lead to a sharp drop in prices”.
The second question has interested representatives Les Echos: “Should we expect the collapse in 2013?” One major reason for concern is the drop in the number of transactions recorded in 2012. According to the president of the National Real Estate Federation (FNAIM) Jean-François Buet, “the volume of the real estate market declined by almost 20% in 2012, and this decline does not bode well”.
In what areas the situation is best at the moment? InParismore or less maintained a stable situation: the offer is limited relative to demand, which does not fade in the apartment with a small area and in a good condition. The result was a rise in prices in 2012 for housing in the old fund Paris by 1,5%, while in Île-de-France real estate prices dropped by 1,1% (excluding Paris). Even luxury property, which has seemed to develop «immunity to the crisis», has also suffered from market volatility. In this segment, too, there are difficulties.