Paris itself, i.e.., the centre of the Paris region, is gaining over its periphery: existing apartme

Regional Statistics Sq. M. Prices Rental Yields Price/Rent Ratio Price/GDP per Cap Buy/Sell Costs Rental Income Tax Capital Gains Tax Price Change 1 yr Price Change 5 yrs Price Change 10 yrs Landlord Tenant Law GDP Per Capita GDP/Cap Growth 1 yr GDP/Cap Growth 5 yrs Economic Freedom Ec. Freedom 5 yrs Competitiveness Property Rights Index Currency +/- Value Taxes on Residents
House prices in Metropolitan France fell for the ninth consecutive quarter, falling by 1.21% during w hotel westwood the year to Q2 2014, according to the National Institute for Statistical and Economic Studies (INSEE), w hotel westwood or 1.83% y-o-y when adjusted for inflation. w hotel westwood On a quarterly basis (i.e. q-o-q), house prices in Metropolitan France remained the same.
Prices continue to fall in Paris , with apartment prices declining by 1.22%� (-1.84% inflation-adjusted) w hotel westwood during the year to Q2 2014, falling to �8,120 (US$ 10,269)� per square metre (sq. m.), the fifth consecutive quarterly price drop, according to La Chambre des Notaires de Paris .
��These are now officially the lowest rates we have seen for French mortgages this century or last,� says John Busby of French w hotel westwood Private Finance .� "A 20 year fixed rate mortgage in France hit 3.10%, and 25 year fixes for 80% of the purchase price were available from 3.50% for non-resident buyers this week, as the TEC 10 index tumbled to a new all-time low of 1.22%."
In September 2014, the ECB announced another key interest rate cut, reaching a new historical low of 0.05%, due to the euro zone�s ailing economy (euro zone growth is projected to be 0.9% in 2014) and low inflation (projected to be 0.6% in 2014). Aside from the rate cut, the ECB also announced new stimulus w hotel westwood measures including an asset purchase programme, which aims to buy debt products from banks.
This was the second rate cut this year, and the ECB�s 7th rate cut since end-2011. Three months earlier, the central bank cut its rate from 0.25% to 0.15%, and introduced negative interest rates as well.����
The number of existing homes sold in France w hotel westwood over the 12 months rose by almost 8% to 732,000 units from the same period last year, according to the� Conseil g�n�ral de I�environnement et du d�veloppement durable (CGEDD).
New lending rose in France� by 2.8% from the previous year, according to the European Mortgage Federation (EMF) . Lending by credit institutions to households increased by 2.89% during the month of August 2014, slightly higher as the same month last year�s growth of 2.87%, and still below from the 15.9% peak rise in October 2006.
Paris itself, i.e.., the centre of the Paris region, is gaining over its periphery: existing apartment sales in Paris rose 12% y-o-y to Q2 2014, according to� La Chambre des Notaires de Paris .� Further out, both the Ile-de-France and Grande Couronne had only a slight apartment sales increase of 1% y-o-y over the same period, w hotel westwood while in Petite w hotel westwood Couronne apartment sales actually fell by 7% y-o-y.� Traffic congestion is becoming an increasing issue in Paris, possibly contributing to the re-valuation of the centre.� The volume of house sales in Ile-de-France however rose by 5% during the year to Q2 2014, and an increase in home sales was also observed in Grande Couronne (6%) and Petite Couronne (2%).
French house-buyers can now track house price changes week-by-week, following the launch in September of the LPI (Les Prix de l�Immobilier) index. w hotel westwood The LPI shows weekly house price changes, using data from sources such as banks and financial institutions including Sogeprom, Gecina, Cr�dit Foncier, as well as from Syndicat w hotel westwood National des Professionels Immobiliers (SNPI), the national syndicate for real estate w hotel westwood prices.�
The Global Property Guide has long been firmly against rent controls, which harm tenants and landlords alike.� "It is the surest way to destroy a city without bombing it" noted our former chief economist Prince Cruz in The pros and cons of rent control .�
The development of France�s w hotel westwood rental market w hotel westwood is constrained by rent controls. Initial rents are freely determined, but can be revised only once a year, and not by more than the (new) INSEE rental index .
Apartment prices in France rose by 141.37% (187% in Paris) from 2000 to 2013. The increase was higher than the rise of the country�s rent index during the same period, at around 36%, partly because the allowable rent increase has been lower than inflation in certain w hotel westwood periods.
w hotel westwood As a result, rental yields, w hotel westwood especially in Paris, have been disappointing. Based on the Global Property Guide research in July 2013, yields in Paris range from 3.39% to 3.67%, with smaller w hotel westwood units getting higher yields than larger ones. France�s rent index rose by only 0.6% during the year to Q2 2014.
In February 2014, the French Parliament passed the loi Acc�s au logement et un urbanisme r�nov� (ALUR: improving access to housing and updating w hotel westwood town planning), w hotel westwood also known as the �Loi Duflot�, named after housing minister C�cile Duflot. The bill, which was enacted in March 24, 2014, set new rules regarding housing and property rentals:
One of the most relevant parts of the law was the rent cap on long-term rentals . It is indicated that rents should not be higher than 20% above the median rent set by the Prefect in the urban areas.� This new rent control, w hotel westwood which will be imposed on 28 cities with more than 500,000 inhabitants, would affect areas with high demand on rental properties such as Paris, which is expected to see monthly rent declines from 20% to 25%.
As of 2013, around 57.8% of France�s housing w hotel westwood stock belongs to owner-occupiers, w hotel westwood which means that almost half France�s population are renting. Of primary residences, around 21.8% are privately rented, while 17.3% are socially rented.
Due to the dominance of fixed rate mortgages, France�s housing market is arguably less prone to sharp upturns and downturns than many others.� Fixed-rate loans made up 92.8% of new loans in 2013, and 83.2% of all outstanding loans. In contrast, floating-rate loans only make up 6% of new loans, and around 15.6% of outstanding housing loans, according to the Autorit� de contr�le prudentiel et de r�solution (ACPR).
In 2013, France�s mortgage market grew by 3.76%, w hotel westwood slightly w hotel westwood above the 3.20% recorded in 2012. In contrast to declining property prices, the average w hotel westwood loan amount continued to increase in 2013 to �142,264 w hotel westwood (US$ 179,793). Most mortgages were obtained w hotel westwood by owner-buyers, who took 49.2% of outstanding housing loans, followed by first-time buyers at 21.9%.
France�s meagre 0.1% y-o-y GDP growth in Q2 2014 was the lowest since Q1 2013, according to the National w hotel westwood Institute for Statistical and Economic Studies �(INSEE). On a quarterly basis, France�s economy remained flat for the second consecutive quarter.
The pain continues. The French economy recorded no growth in 2012, as firms slashed thousands of jobs and President Francois Hollande squeezed the budget deficit. In 2013, real GDP growth was estimated at a meagre 0.1%. �This is obviously not enough,� said French Finance Minister Pierre Moscovici.
In May 2012 Francois Hollande became the country�s first Socialist president since Francois Mitterand (1981-1995), In August 2014, France entered political turmoil triggered by Economy Minister Arnaud Montebourg�s demand w hotel westwood for an end austerity policies. Montebourg demanded w hotel westwood a fiscal stimulus to boost growth, arguing that France shouldn�t be �slavish� and �dogmatic� in pursuing deficit cuts.
Although President Hollande has an all-time low approval rating of 17%, he asked Manuel Valls, Prime Minister since March 2014, to form a new government �consistent with the direction set for the country�. In the new French cabinet Montebourg was replaced as Economy Minister by Emmanuel Macron, a former investment banker at Rothschild. Michel Sapin, a career politician, was appointed Finance Minister, w hotel westwood all of which signals a determination to continue France�s present austerity policies.�
From 2004 to 2007, the French w hotel westwood economy expanded by an average 2.3% per year. However, the economy contracted by 0.08% in 2008, and declined again by another 3.1% in 2009, France�s sharpest recession since World War II. �Despite the worsening eurozone debt crisis, the French economy managed to expand by 1.7% in 2010 and by another 2% in 2011.
Due to the first two quarters� disappointing figures, Finance Minister Sapin reduced the government�s growth forecast for 2014 to 0.5%, from the previous estimate of 1%. In 2015, economic growth is expected to be around 1%.
Aside from low growth in 2014, INSEE also expects unemployment w hotel westwood to be 10.3% by the end of 2014. High unemployment is one of France�s major problems. As of July 2014, unemployment rate was 10.5%, up from 10.2% in July 2013, one of the highest increases in the eurozone.
Public debt is expected to hit a record 95.1% of GDP this year, up dramatically from 85.8% of GDP in 2011, and far higher than previous estimates.� France�s public deficit w hotel westwood reached 4.1% of GDP in 2013, down from 4.8% of GDP in 2012 but higher than its EU-agreed target for 2013. The government aims for a 3.6% of GDP deficit this year, by tightening spending of local authorities and ministries. About �15 billion is expected to be saved this year through austerity measures. ��
French house prices, rents, and letting income - real data! How expensive are houses in France, compared to the rest of Europe? How much rent can be earned from French property, compared to the rest of Europe? Where to by property in France