French News Archive

Property Market

House Prices in France for First Quarter 2010

Thursday 15 April 2010

House prices remained stationary in the first quarter, but over a year there have been marked regional differences.

That is the conclusion of the latest French property market survey from FNAIM, the French estate agents association.

While the price of apartments fell on average by 2.7% in the quarter, house prices fell by only 0.1% compared with the previous quarter.

This means that, on a rolling 12 month basis (Qtr12009/Qtr12010), residential property prices in France have fallen by an average of only 2% (1.9% for apartments and 2.2% for houses).

Between the major geographic regions the variation in house prices over the 12 month period comparative period has been greater.

The starkest contrast is between the North and East, where house prices have fallen by 8.7%, and the South West, where they have actually risen by 3%.

Regional House Prices 2010
RegionAnnual variation
West-1.4
Ile-de-France1.1
North and East-8.7
South West3.0
Centre and Alps-2.7
South East-5.2
France-2.2

Source : FNAIM

The price of apartments in the Ile de France saw stronger growth of 3.4% over this period, suggesting that the market in Paris is holding up more than other areas of the country. By contrast apartment prices in the South East fell in a similar manner to that of house prices in the region.

A similar mixed picture emerges by comparing administrative regions, where significant differences appear, as is shown on the table at the foot of the page.

Despite pressure on prices in some regions, FNAIM consider that the tendency remains towards a stability in prices, and that a movement upwards in one quarter is likely to be postscripted by a downward trend later due to the general level of fragility in the marketplace.

An opinion survey carried out by FNAIM as part of their property market review shows a continued high level of uncertainty amongst many French households, concerned about the economic outlook and that prices remained beyond their reach.

Divergences in Figures

The report by FNAIM follows hot on the heals of a review of the market by national estate agents Century 21, who reported recently that house prices in the last quarter had risen by 0.51%, while those of apartments by 1.09%.

In a few weeks time the property market review of the notaires of France will be published, and they may then need to sit in arbitration between the two reports from the estate agents!

This week the Paris notaires reported signs of recovery in the capital, and that the same upward trend was emerging in some other major cities. However, overall they expected 'stabilisation' of prices in 2010.

Our own general view is that, although these reviews are useful for providing an idea of general trends, you need to be careful about reading too much into them, particularly in relation to the market for properties in the countryside.

As Antony Bryan of Guyenne Immobilier based in Lot et Garonne argues, 'The figures do not portray an entirely accurate image of the sector of the market which is most relevant to the average British buyer – the rural market - as the vast majority of transactions occur in urban areas. '

'Thus, although the FNAIM figures show an increase in property values in the South West of France, much of the data will actually be based on sales that took place in the cities of Bordeaux and Toulouse, where the impact of the downturn has been less marked.'

And of course, we would also add to that no figures on 'average' prices can take account of differences in location, size and condition. Accordingly, as we frequently say, use these reports merely as a general indication of trends and prices.

The following table shows the latest house prices for each administrative region of France and their percentage change over a 12 month period to the first quarter of 2010.

Regional House Prices
Regions of FranceAverage Price €/sq. metreAverage % variation
2008200920102009/2010
Alsace2 0871 9941 901-4.6
Aquitaine1 9281 8001 8935.2
Auvergne1 6721 5351 5501.0
Burgundy1 6561 7031 676-1.6
Brittany2 0341 9752 0523.9
Centre1 7811 5991 545-3.3
Champagne-Ardennes1 6581 5721 508-4.1
Franche-Comté1 6521 5141 378-9.0
Ile de France3 1412 8522 8841.1
Lower-Normandy1 7571 5771 489-5.6
Upper-Normandy1 9611 9111 853-3.0
Languedoc-Roussillon2 3642 0411 958-4.0
Limousin1 4411 4651 337-8.7
Lorraine1 6181 6741 654-1.2
Midi-Pyrenees1 7941 6141 6421.7
Nord-Pas de Calais1 9561 9271 715-11.0
Pays-de-Loire1 9241 8181 763-3.1
Picardy2 0211 8841 658-12.0
Poitou-Charentes1 6681 4871 417-4.7
Provence Alps Cote d'Azur3 4853 1752 983-6.0
Rhône-Alpes2 3892 2192 151-3.1

Source: FNAIM

We shall provide more information on town and city prices in France in our next Newsletter.

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