Île-de-France region fuels French real estate market’s recovery
The real estate recovery in France in 2015 and 2016 has chiefly been carried by the Paris and Île-de-France markets, particularly in the new-build sector.
All sectors of the French real estate market recorded a good year 2015 with the recovery continuing into this year, after three years of sluggish performance. According to La Tribune, the capital and its region are chiefly responsible for carrying the recovery.
The number of sales in residential property (excluding new builds) surged by 15.6% in 2015 to 800,000 units, according to the National Real Estate Federation (FNAIM). Similarly — if to a lesser degree — construction of housing units were up 2% over a one-yeard period as of January 2016, with 350,000 units begun.
Paris and the Île-de-France region specifically are largely responsible for the good national figures. The Paris notaires note that “The year 2015 was marked by significant growth (+17%) in sales of existing apartments in Île-de-France, compared to 2014, with about 15,000 additional units sold.” That meant 48,510 sales in 2015. Volume was up but prices were slightly lower in 2015, down 1% compared to the previous year. The price averaged out at 5,260 euros per square meter at the end of the year.
The number of housing units built in Île-de-France grew by 18% over a year, to 63,200 units. The increase recorded in the region (9,700 more units between February 2015 and January 2016 than between February 2014 and January 2015) is higher than the increase in the rest of France (6,900 units).
Experts believe that alongside economic growth and an advantageous national context for buying due in large part to historically low mortgage rates across the country, the Paris region has benefitted from the number of real estate and construction operations associated with the development of the Grand Paris (Greater Paris). For instance, in the Val-de-Marne department — in the capital’s inner suburbs — construction of housing units nearly doubled in 2015.
Photo credit: José Luis Mieza