French Property Prices in April 2017: Exceptional Growth Continues
The numbers from the market’s leading observatories are in, and the extraordinary figures seen in the first quarter have continued into spring. French property prices in April grew in the majority of major cities, with one city making a comeback after a bad start to the year.
While we await official Notaire figures for the first quarter of the year, prominent market observatories Meilleursagents and Seloger have recorded yet more exceptional price growth for French property prices in April. They also show that Lille, a city suffering from depreciation since rent controls were imposed, saw its first growth in months.
For France’s ten biggest cities, almost exactly the same trend was continued from March. Good growth across the board, with Bordeaux continuing to outshine (1.5% over April, around 10% over 12 months) and Montpellier and Toulouse seeing falls: Lille joined completed the straggling trio in March, but the market there has turned around in April with 0.8% growth. The temporary depression because of February’s rent control imposition has worn off, it seems.
See the summary of statistics for price growth in existing properties below, courtesy of Meilleursagents and Seloger.
|City||April (MA)||March (MA)||Year so far (MA)||Last 12 months (MA)||Last 12 months,|
apartments only (Seloger)
|Finishing Price/m2 in apartments (Seloger)|
Both studies cite interest rates remaining low as a key factor in the market’s continuing strong performance. Meilleursagents recorded a 20-year average mortgage loan interest rate of 1.85% in April, up 0.1% over the course of the month.
Combine this with sellers’ reluctance to offload properties before the result of Sunday’s presidential election, and you have a cocktail resulting in extraordinary price growth. Seloger have recorded price growth nationwide of 0.6% for the last three months (February, March and April). That is equal to the growth seen throughout 2016, showing just how strong the market has started this year.
The new-build property market has also had a great first quarter, with construction starting on 97,100 properties started, 18.5% higher than in Q1 2016. Prices have remained stable (0.0% change overall) with price rises for houses and slight falls for apartments in Q1 2017.
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