Property sales in France have fallen off a bit so far this year, and analysts expect prices to drop even further next year. According to the national association of real estate agents, property prices will end 2008 down approximately 7 percent from the beginning of the year, and could fall by the same amount in 2009. Additionally, reports are showing that the number of transactions for the first half of 2008 is down 25 percent from the same time in 2007.
The housing market in France has seen record growth in recent years and it, like many other countries, is taking a hit with the global financial crisis and real estate slowdown. From 1995 to the beginning of 2008, prices for homes in France rose 210 percent, in large part due to foreign buyers from the UK, US and Germany. With the US seeing an economic slowdown this year, the buyers from abroad have not been nearly as numerous as in the past few years.
The construction industry in France accounts for 6 percent of the economy, making it one of the largest in the developed world. The government is hoping that plans announced recently to combat the financial crisis will help to keep losses to a minimum. President Nicolas Sarkozy has announced plans for the government to buy as many as 30,000 unfinished homes. This will certainly help the industry, but prices won’t rebound for a while, meaning it is a good time for those who want to buy in France.
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