Recently release figures in France show French property prices continuing to soften. Estimates given are for a total number of transactions at 668k down from 704k last year a fall of 5.1%. At the height of the market the transaction level stood at over 800k.
The largest falls in transaction numbers came in the Champagne region at almost 9%, the smallest falls coming in the Alsace region near Germany. In the popular regions, Paris saw transactions numbers decline by 6.6%, the Cote d’Azur by 6.7% with the Alps falling by just 4.9%.
There are many factors contributing to this reduction. The impact of inflation without wage growth over the past 5 years has dented confidence in France and as the economic situation is less clear. We have a similar situation in France than in the UK where people would rather not sell if the price they wish to sell for is not achievable.
While confidence and growth forecasts remain low in France we can expect the prices to continue to soften and for the number of transactions to also remain steady or perhaps to drop to 650k if you follow the prediction of the FNAIM.