Property prices in France fall 2.2%

For three years property prices in France have been on a gentle downward slope.

The price of existing homes in France fell 2.2% year on year from the fourth quarter of 2013 to the same period last year, according to the Notaires-INSEE index, which was released today.

Overall, prices in rural, semi-rural and suburban areas have fallen the most with real estate in popular cities, towns and resorts (namely the Alps) providing balance to the figures.

Over the last three months of the year compared to the previous quarter, prices of existing properties sold dropped by 1%, with houses down -1.1% after -0.5% in third quarter and slightly less for apartments (-0.8% after -1.1%).

In Ile-de-France, Paris’ Greater London equivalent, the decline in housing prices is the same in the fourth quarter than in the third: -0.5% in the quarter, down 2% year on year. House prices fell slightly (-0.7% over the quarter, -2.1% year on year) than apartments (-0.4% and -1.9%).

Out in the provinces, falling prices for existing homes quickened: -1.1% in the quarter, 2.3% year on year. The decline is similar for apartments (-1.1%) and home (-1.2%) over the quarter, but is somewhat larger for apartments (-2.7%) than for houses (-2.1%) year on year.

The annual volume of transactions fell slightly by 2.4% in 2014 year on year, with 700,000 sales estimated by notaries. However in 2013, the volume of transactions increased by 2.7%.