French Property Prices Continue to rise After Election
The most recent market figures show that the presidential election had no stalling effect on house price growth in France’s major cities during the month of May. The great French property price recovery continues unabated.
Market observatories Meilleursagents and Seloger have released their property price figures for May, and for the first time in 2017 all 10 of France’s biggest cities saw growth. The French presidential election concluded on May 7 did not have the negative market effect some predicted.
Prices in the capital rose 1.4% over May, with growth especially strong among large properties (2-bed flats and above growing 2%). The price/m2 record set in 2011 has been firmly obliterated, Seloger estimating it is now as high as €8,930/m2.
Bordeaux’s property prices grew 1.3% in May as the city continues to see double-digit year growth; Meilleursagents recording a figure of 11.8% while Seloger estimates a slightly lower 10.7%, possibly because of differing methodologies.
The full table of statistics compiled from the two observatories is below. Prices are based on those signed at the promesses or compromis de vente, and are therefore preliminary as these take a few months to become completed transactions.
|City||May (MA)||April (MA)||Year so far (MA)||Last 12 months (MA)||Last 12 months,|
apartments only (Seloger)
|Finishing Price/m2 in apartments (Seloger)|
Seloger have a 3.9% growth figure over the last 12 months for France as a whole (in existing apartments only, which represent the entirety of their city-by-city figures and the vast majority of Meilleursagents’), with 1% in the last three months. Other figures for the last three months they cite are a 4.2% margin of negotiation and 11% less transactions compared with the previous three-month report in April.
Both reports cite low interest rates and positive wider economic trends as the factors behind this continued market price performance. Average mortgage rates actually fell slightly according to Meilleursagents, from 1.85% in April to 1.80% in May (for 20-year loans), and consumer confidence and economic growth both recently showed improvement. Some have put this down to the Macron victory rejuvenating France’s business world and at the very least relieving the majority of the population, two-thirds of whom voted for the young pro-business leader.
Seloger’s monthly release covers more cities (34 to Meilleursagent’s 10) and it is important to note that prices have not grown everywhere in the last year, while some outside the top 10 are seeing double-digit increases. In the last 12 months, Saint-Etienne (-4.9%), Le Havres (-3.7%), Limoges (-2.2%) and Perpignan (-9.5%) have seen falls. Meanwhile, fast movers not in the top 10 include Tours (+11.4%), Nimes (12.2%) and Le Mans (+12.9%).
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