Low French mortgages rates boosted new-build property construction in 2016

The new home construction industry in France had an amazing 2016. Around 376,500 new homes were built last year, 10.4% more than in 2015, according to figures released this Friday by France’s Ministry of Housing.

Building permits granted for new homes jumped by 14.2% in 2016, to 453,200 units. Both sets of figures were obviously welcomed by Housing Minister Emmanuelle Cosse.

Exceptional borrowing conditions for both domestic and foreign purchasers had a lot to do with this. In France mortgage rates, including those secured for domestic buyers,  stood at 1.34% on average in December, according to the Crédit Logement / CSA observatory.

These conditions allowed an increasing number of households to secure better rates and pay of large chunks of their remaining mortgage amounts. As a result property loans experienced a “strong rebound” with the number of secured new loans reaching a new record.

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