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In the last few years the French housing market has developed into a market where supply and demand have grown explosively. This is mainly caused by increase in income, improvement of loan possibilities and low interest rates.
In 2004 ca. 606.000 houses changed owners and in 2005 this will be an estimated 614.000.The price development differs strongly per department :

Ile-de France: -9,4%
Northeast : +4,4%
Centre and Alps -1,0%
Southeast : +11,2%
Southwest : +2,1%
West: +10,0%

(1st quarter 2005 houses and departments)

   

The largest group of foreign buyers in France is formed by the Italians, followed by the British, the Germans, the Dutch and the Swiss. In 2002 ca. 27.000 second homes were sold to foreigners in France. The average amount paid comes to ca. € 150.000. The top segment, houses from € 500.000 are in demand by buyers from Russia, Lithuania, Kuwait, Saudi Arabia and the Emirates.

The price development of houses and apartments in France in the past ten years has been as follows:

apartments
houses
total market
Year average
€/ m2
index
variation
p/y %
average
€/ m2
index variation
p/y %
average
€/ m2
index variation
p/y %
1995 1.276 83,4 - 950 75,5 - 1.126 80,8 -
1996 1.239 81,0 -2,9 952 75,7 0,2 1.112 79,8 -1,2
1997 1.244 81,3 0,4 962 76,5 1,1 1.121 80,4 0,8
1998 1.278 83,5 2,7 1.011 80,4 5,1 1.163 83,4 3,7
1999 1.395 91,2 9,2 1.141 90,7 12,9 1.267 90,9 8,9
2000 1.530 100,0 9,7 1.258 100,0 10,3 1.394 100,0 10,0
2001 1.645 107,5 7,5 1.353 107,6 7,6 1.479 106,1 6,1
2002 1.843 120,5 12,0 1.467 116,6 8,4 1.655 118,7 11,9
2003 2.150 140,5 16,7 1.634 129,9 11,4 1.892 135,7 14,3
2004 2.532 165,5 17,8 1.838 146,1 12,5 2.185 156,7 15,5
2005 2.801 183,1 10,6 2.019 160,5 9,9 2.410 172,9 10,3
2006 3.001 196,1 7,0 2.161 171,6 7,2 2.581 185,1 7,1
   

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