According to various estimates, property prices in France have dropped by 0.4-2.5% in the first half of the year. Economists Jean-Luc Buchalet and Christophe Prat predict that the crisis in this market will end only in 10 years, when prices will go up again, reports ee24.com citing french-property.com and lefigaro.fr.
Agency Century 21 has published data on the fall in prices in the first half of the year by 0.4%. Houses on the secondary market in France now cost an average of €2,545 per sq.m. Although dropping in prices is not something new (-2% in 2012 and -1.8% in 2013), now the housing is still by 75% more expensive than in 2000. The price per sq.m in Paris is €8,229.
Laforêt, who works primarily with property in small towns and rural areas, reports about fall in prices by 2.5% in the first half of 2014. For the whole year the 3 per cent decline is expected. According to Laforêt, square meter in France is worth €2,807, in Paris - €8,083.
Economists Jean-Luc Byushale and Christophe Praz argue that stagnation will continue for another 10 years. The decisive factors are tightening of credit policy, cessation of growth of income of the French families, aging of population and reducing in the number of potential buyers on the background of the stable supply.