Thursday, February 26, 2015

Real estate: in Paris, square meter below 8 000 – The World

Le Monde | • Updated | By

Price per m2 median of old apartments in Paris, in the 4th quarter 2014.

The threshold is symbolic but it illustrates the erosion of prices of existing homes in France. In Paris, the price per square meter fell below the threshold of 8000 euros in the last quarter of 2014 to 7960 euros. Mid-2012, the reference unit had increased to 8,440 euros. And the decline is probably not complete. Notaries anticipate a further decline in 7840 euros Parisian square meter, by April, 2015.

At the national level, the decline in housing prices over the same period of the late 2014, s’ is, according to the notaries, accentuated, reaching 2.2% compared to the fourth quarter of 2013

The decline in Paris from -. 2.1%, is not considerable. Accumulated over 30 months, it is a snack 6%, but, combined with moderation mortgage rates, it allows an increase in the purchasing power of the order of 15%, giving a little air to purchasers in the capital. Not enough, however, the solvency of first-time buyers, still rare on the market: the barometer Capacim Crédit Foncier estimated at 2 th quarter of 2013, only 10% of non-owners Parisian households afford a housing adapted to the size of the family. The decline today is so small consolation against the doubling of prices observed since 2004.

Falls in double figures

“With hindsight, we see that the popular districts are those who have best resisted because their gentrification is at work, with major urban transformation” , argues Sébastien Lafond, founder and director of Meilleursagents. com. Since the peak in 2012, the 10 th district fell by only 4.3%, the 18 th 3.1%, 19 th 2.5% and the 20 th 3.2%. These thirty months of decline has affected more uptown, the 16 th (-6.6%) and 7 th (- 9.9%) districts and more expensive of all the 6 th . (- 13.4%)

In the wake of the capital, prices in Petite Couronne, flex 1.1%. However with largest decreases, up to 6% in mass as Créteil and Saint-Maur-des-Fosses (Val-de-Marne) or Levallois-Perret (Hauts-de-Seine). Conversely, others continue to rise, as Rosny-sous-Bois (+ 1.7% in one year) or Montreuil (+ 2.8%) (Seine-Saint-Denis).

In Great Crown, the drop was – 3% for apartments and – 1% for houses, with here and there, double-digit falls: – 11% in Palaiseau (Essonne) and Cergy-Pontoise ( Val-d’Oise), for example. In the provinces, the decline is also accelerating to 2.3% year on year.

In 2015, professionals still provide a price adjustment downward, between 0% and 3 % for Century21 and MeilleursAgents and even, for notaries, a slight acceleration of this movement which could exceed 5% in Paris and the Ile-de-France.

If prospects brighten for accommodation nine, after a good 4 th quarter 2014 in which developers were up 12.5% ​​of sales, it is not the same for the former would continue in 2015 , idling around 740,000 transactions, such as prognostic Crédit Foncier, is better than in 2014 (717,000) but far from the highs of 2005 (830,000). “Compared to the number of households is growing, 740,000 sales is low and does not ensure market liquidity. It lacks 200,000 transactions in the economy and if we consider that a household changing housing expense 10,000 euros easily move, buying furniture, decoration and transfer taxes, it is 2 billion euros of activity that are lost “, Sebastien de Lafond judge.

” The confidence is not there “

” So that there will be a buyer for a seller, as is the case in Paris and in most major cities in France, prices continue to decline, “ says Mr. Lafond who believes that it would take three times more active buyers than sellers to restart prices. “There is in our agencies in the world, the French are interested in real estate, want to move, rent, but did not materialize. The trust is not there “, says Bernard Cadeau, president of Orpi network. Notaries further confirm this interest hesitant pushing sellers to make concessions: “They now accept to review their claims to the downside, especially when the well has defects” , they comment.

Another trend, credit rates might be very attractive, banks do not lend themselves easily: therefore they require a personal contribution, between 15% and 20%, and do not want to exceed a loan term of 20 years.

The French market offers opportunities that are not immune to foreigners, including American and British, whose purchasing power is favored by the exchange rate. “The English comeback in their election regions, Aquitaine, Perigord, Brittany and the Nord-Pas-de-Calais” , says Thierry master Delesalle, notary in Paris. “Our stand of French notaries at London show” French Property Show “in January was stormed” , he said. “There is a renewed interest of Americans, the dollar gained 30% to 35% of the purchasing power of the euro face” , analyzes Laurent Demeure, head of Coldwell Banker France, which travels the United States with his presentation of the French market. “2014 was a record year for the number of purchases in France by foreigners, residents or not,” , confirming master Delesalle



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