French property market: the 2016 dynamics are still here

If you are considering acquiring a new home in France, 2016 was a very good year in terms of mortgage rates and prices. Now that we are well into 2017, obviously, the question that everybody is asking is whether those dynamics will linger in the new year. Well, according to 74% of property agents in France, it seems to be the case so far, here is why.

Lasting dynamics for French property market

The French property market was off to a great start in 2017. This was not really a surprise as property market dynamics don’t stop with the new year. It is a logical evolution over the last 12 months thanks to two factors mainly:

  • Incredibly low interest rates for mortgages: 1.3% in December 2016
  • Governmental incentives for acquisition and buy to rent scheme

Thanks to these, the number of mortgages has increased by 28% over the last two years. The sum of all credits for property acquisition in France last year was 154 billions Euros. In 2017, this amount is expected to increase by 4%. The dynamics are still here for sure but this is a presidential year of course and with that comes uncertainty, usually.

Property prices slowly increasing

In spite of the elections looming, acquisitions are still on the up. The factors described above are boosting activity and therefore prices. Such conditions mean that families or couples who were unsure are buying regardless of the forthcoming elections, usually a brake for property markets. In Paris for example, prices have increased by 4.4% over the last 12 months. Of course, this is the capital city and prices are higher but even in the region, the prices have increased by 3.1%. Trends are similar although much lower in the rest of the country: +1.6% – undecided buyers are therefore getting into action to purchase at the best price.

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This entry was posted on Thursday, February 23rd, 2017 at 11:24 am and is filed under French mortgage, French Property, Lifestyle, Living in France, Real estate market . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


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