New Records Set On French Housing Market

In 2019 the real estate market in France went through another period of a growing demand for both houses and apartments. According to the report done by Notaries of France, last summer’s swelter boiled up the market with the skyrocketing amount of deals. In June, the number of transactions already exceeded one million of transfers. This number continued to crawl up, from 6.2% increase in June to the 10.6% rise by the end of the fall. This way, November marked the growth to the point of 1 063 000 operations. In spite of such a brisk buying rate, there is no need to be afraid of rapid price growth or the depleting of hot deals. The offers on new homes are still growing due to the boom in the construction sector and, besides, the number of individual owners of real estate who wants to catch the sway is also rising.

Real Estate Price Development

According to the INSEE and Notary indexes, the prices for real estate in France in the third quarter of 2019 rose by 1% on average compared to previous quarters. This number will probably continue to grow in 2020 from month to month. In addition, compared to 2016, apartments continue to show a sizable difference in the pace of growth of +4% against +2,5% for houses. Île-de-France is as always ahead of the curve; here the cost of real estate went up slightly faster than in other regions. Between the first and the third quarters of 2019, the price increment swelled from 0,6% to 0,9% coming up to approx. 3,6%. This most surely means that such a trend will continue during the whole winter of 2020. By January 2020, the cost of an apartment in Paris rose by 6,1%. Other provinces of France will follow the overall trend of a modest price increase for private homes and apartments despite the drop in the fourth quarter of 2019 due to the holiday season. The previous year showed with its level of demand how attractive is the current situation on the real estate market in France. An increasing number of people who put their investments into audacious deals in the market of private homes in France will only cultivate more interest. Therefore, an adamant tandem of the slow-growing pace of immovable property cost and rapid demand will maintain an attractive climate for the real estate market in France.

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