We Know Property

After sharp corrections seen in fellow euro members, Spain and Ireland, France’s property market and specifically Paris is not looking like it will follow its neighbours as prices show steady growth in the first 6 months of 2008.

French-Property-News.com have reported Flats in Paris are a symbol of wealth and richness around the world.

According to Archant Life France, who publish the market-leading publications, French Property News, Living France and France magazine, there are no signs that French house prices will see the steep falls experienced in the UK, especially in Paris, where strict planning regulations limit the supply of properties. French price growth peaked at annual rates of about 13% in 2004 and 2005 and remained in double-digits in 2006 before slowing to 5% last year. Prices have remained steady for the first 6 months of 2008.

“A lot of people think that Paris is the most beautiful city in the world and they want to have a flat in Paris, and we have a very strong flow of money coming in from the emerging countries,” says Charles-Marie Jottras, president of Daniel Féau property group.

Laurence Boone, economist at Barclays Capital in Paris, believes prices overall will not drop. “You have to look at the fundamentals to ask, why would prices fall? In Spain there was an excessive supply of new construction and new building, whereas in France this was restricted. So if supply and demand are balanced, prices are close to equilibrium – and we won’t see a price fall.”