2013 Residential market report for France: fewer transactions, prices remain stable (still)

A wait and see attitude prevailed in the real estate sector all along 2012. Transactions have been substantially delayed and caused for part severe decrease of agencies' turnover. While expecting price declines and a reduction of sales, prices remained stable... for the first three quarters of 2012.

Prices of old dwellings increased by 0.8% which remains very much under the 7.5% increase in 2011 and does not take into account price declines of 1.5% during the last quarter of 2012.

FNAIM foresees price developments reaching from -2% to 0% in 2013. An increase of interest rates usually appears to be detremental to the real estate transactions. Nevertheless, "such small increase in 2013 will most probably not affect people's intention and capacity to buy or rent, as they might fear an even bigger increase of interest rates in coming years" stated Jean-François Buet, new elected President of FNAIM.

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