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French property market starts strong in 2018, with leading the charge
The French property market has started the year well according to the latest nationwide figures. is leading the charge with 1% property price growth.
Kicking off what many predicted would be a more quiet year for the French property market compared with 2017, January has surprised onlookers. The latest figures from price observatory portal Meilleursagents shows that seven out of France’s 11 largest cities saw growth, with and Bordeaux (both +1.0%) exhibiting the most marked price appreciation.
Nantes (+0.8%) and Marseille (+0.7%) also performed well while Strasbourg, a city that at times last year showed glimpses of a booming market, saw its prices fall 0.4%.
Overall, the top ten cities saw their prices grow 0.6% and the top 50 grew 0.3%. Prices in the countryside saw no significant change and Meilleursagents does not record the national average, deeming the market too heterogeneous.
Price growth within the peripherique was not equaled by its suburban counterparts. Petite Couronne, the inner ring of the suburbs, saw growth of 0.4% while Grand Couronne saw no change at all.
Average interest rates are at 1.7% for 20-year loans, equaling the lowest rates seen in 2017.
Year figures show that Bordeaux’s price growth has outpaced all other cities to an astonishing degree, almost double that of the next-fastest growing city, Lyon. lies somewhere in the upper-middle of the rankings, with 5.6% yearly growth.
The Notaires were expecting 7% price growth in the capital by February, so it will be interesting to see how these figures correspond with theirs once they release their official report for the period in the next few months.
Within , the suburbs immediately surrounding the city – Hauts-de-Seine, Seine-St-Denis and Val-de-Marne – and to its north – Val d’Oise – did well.
Meilleursagents’ analysis splits the market into two parts. On the one hand, there are the well-earning salaried professionals that are seeing earnings growth and purchasing power increase. With low rates and geographic and economic mobility, they are well-placed to take advantage of the favorable buying conditions. On the other hand, there is the under- or unemployed population that is finding it difficult to get on the housing ladder. Consecutive falls in activity in the last few Notaire reports on the capital seem to back this up. But that is not being felt in price, as supply still lags far behind demand, especially within the peripherique where there is little space to build.