Paris real estate sales: revenues up and prices stable
The Council of Notaires releases its 2013 housing price projections and the UMP political party has some ideas on how Paris should spend the increased revenues generated from property transfer taxes.
In the midst of controversy over the funding of the Grand Paris Express metro project, the UMP is now demanding that the city of Paris use a portion of the revenues generated by the property transfer tax to help fund the Parisian Metro. Property transfer tax revenues of €1.078 billion gross were collected in 2011, and Paris expects to see €1.1 billion this year. “We can’t stop talking about market decline, but the numbers are climbing,” argues the UMP source. UMP has denounced this “untouched stash” for years now.
While the controversy swells over the billion dollar budget shortfall for the Grand Paris Express project in the 2013-2015 fiscal budget, UMP is demanding that €500 million be, “levied from the future revenues generated from property transfer taxes paid in 2012,” and be allocated, “by the department of Paris” to the Société du Grand Paris, the state-owned commercial company charged with the project. According to the current budget negotiations, the City of Paris will allocate some of property transfer tax revenues, which are projected to reach €1.7 billion next year.
More good news for 2013: the Council of Notaires (CSN) expect real estate prices to be stable in 2013, varying slightly depending on geographic area. Somewhat vague in their predictions, the CSN doesn’t throw out numbers, but the National Real Estate Federation (FNAIM) foresees an average drop of 1 to 1.5% in housing prices.
Regarding the volume of real estate transactions, the Notaires of France revised their numbers for sales transactions in 2012. They predict 650,000 transactions of existing property and 75,000 transactions for new construction. The tax incentives for low energy buildings (BBC) has given new properties a boost, and that trend is expected to continue in the years to come. Proposed capital gains tax reform seeks to boost real estate transactions with Article 10 of the draft budget law (PLF), providing a 20% rebate on capital gains in 2013. So, should you wait until 2013 to buy?