Older houses are hot properties in France
Low mortgage rates have driven up prices for older homes in France by more than 4% in a year, according to a price index by LPI-SeLoger.
In the 12 months to July 2019, the average price for non-new-build houses rose 4.4% to €3,685/m².
Older apartments commanded an average price of €3,138/m² – an increase of 3.8% on the same month in 2018, the estate agents’ property price barometer showed.
Increases across France are being driven by historically low mortgage rates, coupled with longer loan periods and banks’ willingness to accept lower personal contributions, prompting people to step on to the property ladder.
Michel Mouillart, LPI-SeLoger spokesman, said: “Apart from the Ile de France region, where sale volumes are increasing more slowly than in the past, growth continues at a sustained annual rate.” The barometer also noted that property hunters have been less able to bargain big price reductions over the past three months, with sellers accepting an average of 4.5% off the asking price for older houses, and 2.8% for apartments.
Desirable properties in in-demand areas are increasingly being sold for their asking price, LPI-SeLoger said.
A lack of properties for sale compared to potential buyers had led to price rises in urban areas for some time – but this was now happening in rural areas too since the beginning of the year, it added.
- Property prices in Paris have crossed the €10,000/m² threshold, Notaires du Grand Paris report. Rising demand from French citizens returning to the country as a result of Brexit were part of the reason for the rise.
