News from the market

Real Estate in France: The stabilization is expected in 2010

Thanks to the favorable credit terms and attractive tax arrangements, the year 2009 was, against all odds, not too bad. Experts foresee a similar situation over the year 2010, the rising unemployment still preventing a significant recovery.

The forecast was catastrophic. But, even if we are far below the peaks between 1997 and 2007, neither the price nor the volume of sales has not collapsed. “We had a very difficult first semester, and the second seems to make up for the lost time,” says Rene Pallincourt, president of the National Federation of Real Estate (FNAIM).

In the period 1997-2007 the value of property has risen up to 130%. “There was a tremendous shock that will be long and slow to recover. However demand is not dead and some market segments, the are signs of hope for recovery, “concluded Michael Mouillart, Professor of Economics at Paris X

Source: Digest lefigaro.fr, February-March 2010