Property prices in France should increase across France in 2011 with the largest gains expected in the countryââ¬â¢s large cities. Thatââ¬â¢s the prediction from the FNAIM, the organisation that represents French estate agents, as strong demand in the country continues to fuel property price rises.
Average property value set to rise by 3-6 per cent in 2011
A strong demand for homes in France shows no signs of diminishing and it is this demand which is resulting in property price rises across France.
The latest report from the FNAIM predicts that the average price of a home in France will increase by between three and six per cent in 2011. This is compared to potential stagnation or price falls in other major Western countries such as the UK, Spain and Portugal.
FNAIM expects the greatest property price rises to be seen in five of Franceââ¬â¢s major cities, led by Paris.
Paris property prices rising at their fastest level in 20 years
Property prices in the capital, Paris, have already rebounded spectacularly after the global economic crisis. Century 21, one of the country largest estate agents, reports that Paris property prices have been rising at their fastest pace since 1991, as property investors take advantage of stable market conditions.
The Paris Chamber of Notaries found that property prices in Paris increased by almost 18 per cent in 2010. Indeed, FNAIM figures show that property prices in Paris have increased by an astonishing 40 per cent since 2005, despite the recent global crisis and recession. The figures also found that prices in the rest of France have stayed broadly unchanged in the same period.
With prices set to increase in 2011, it could be the perfect time to buy property in France ââ¬â especially in the larger cities such as Paris, Lyon and Marseille.
