New figures for France’s new-build property market demonstrate renewed confidence in this sector, with sales jumping by 23% in December compared to the same month in 2015.
After the slow year of 2014 the new-build French property market, often the yardstick for consumer confidence in the property market as a whole, these figures are reassuring. Year on year, 2016’s sales rose 19.5%, compared to +13.7% in 2015.
Looking at the numbers on a quarterly basis sees them rise even higher, with Q4 seeing a 28.4% jump compared to the same quarter the previous year.
Domestic market supports growth, underpinned by secure incentives
Patrick Vandromme, the President of LCA-FFB, the French housebuilding federation put it down to the alignment of ‘planets of the property sector’. “We are benefiting from an alignment of the planets: between the low rates, the success of the zero-rate loan [which worked very well for the domestic first time buyer market], the Pinel tax exemption system and recovering household morale.”
Positive outlook for 2017
2017 is expected to continue in this fashion, with sales supported by still low, though slightly higher, French mortgage rates. Next year, 2018, is a worry for some if interest rates continue to rise and also domestically, if the government were to cut down on current housing subsidies.