Rising to the challenge
Arecord-breaking number of property sales was recorded in France in the first five months of the year, according to the latest report from Notaires de France, while prices also continued to rise. The number of sales completed in the 12 months to May 2017 reached a new high of 907,000, overtaking the 824,000 transactions recorded in May 2016 and the previous high of 837,000 in May 2006. Although the figure of 907,000 constitutes a new record, it does not take into account the amount of new housing built in the intervening years, which is estimated at a growth of 1% per year, the report says. The number of transactions would need to reach 930,000 in order for the market to be as dynamic as it was in 2006, when a record 837,000 sales were made, but this figure could well be achieved in the coming months.
The report also showed that there are plenty of properties available in France and that they are selling quickly without much negotiation, and this in turn is boosting prices. Resale prices have continued to rise in the first quarter of the year; up 1.6% from the last quarter of 2016 and up 2.7% year-on-year.
Year-on-year, apartment prices have risen more than house prices, which are up 3.2% and 2.3% respectively. Apartment prices have fallen in a number of cities including Le Havre (-9%), Brest (-7%), Dijon (-4%) and Annecy (-1%). Elsewhere, prices are stable or rising. Bordeaux recorded the biggest increase (+15%), while Besançon, Strasbourg, Nancy, Marseille and Lille recorded significant increases of between 5% and 10%.
While house prices have fallen in Toulouse (-5%), Dunkirk (-4%) and Avignon (-3%), prices have elsewhere increased. Amiens recorded the biggest rise (+15.9%), followed by Nancy (+10%), Bordeaux (+8.7%) and Tours (+7.9%).
The property market remains very active in Paris, Lyon and Bordeaux ( pictured above), with the latter now replacing Nice as the most expensive city in France after the French capital.
The price index projection for the end of August 2017 based on pre-contracts throughout France suggests that this upward trend is set to continue. notaires.fr