French property price discounts harder to come by in major destinations

New released figures in France from the Se-Loger french property portal indicate that the margins for negotiation on property prices have never been so low. The study has been done on the prices the property was listed for versus the eventual sales price recorded at the Notary’s office. The differences are now very slight across many regions of France with home sellers reluctant to reduce prices further.

For apartments in the Rhone-Alpes region, the reduction seems to be a maximum of 2.6% compared to perhaps 3% in the Paris region. Other regions of France have a more substantial average margin, when looking for the market for houses. In Britanny you can expect a possible reduction of 5.5% and up to 9.1% in Champagne-Ardennes.

Our view

The effect of a slightly weaker demand leading to lower initial pricing of the property has lead to this situation where sellers are not willing to drop their prices any further. In our experience we have seen some very large discounts in the past whereas more recently the amount of discount a client has had has been less of a topic of discussion.

Location, Location

As we can see from the above data, this is another example of the way in which the location of a property drives both its liquidity and its value. Properties for sale in Paris do not stay on the market for long and are usually snapped up by buyers from either local or international markets often with buyers competing for the apartments. On the other hand in the less populated areas, houses can sit on the market for years, especially if the house is unusual or very large and requiring maintenance. After a few years on the market 10% would probably be the minimum you might expect by way of discount and you may also encounter problems obtaining finance as the banks may worry about lending against a property that has been on the market for such a long time.