Residential property prices fall in Normandy

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Property prices fell across most of Normandy in 2012 and are expected to fall further this year, according to the annnual
figures provided by the FNAIM, France’s national federation for estate agents.

 

In lower Normandy house prices were down by 5.3% and apartments by 6.5%. In upper Normandy apartment prices fell by 6.5% but
house prices rose by 1.5%.

 

Overall in France price growth slowed to 0.8% and the FNAIM is predicting that they will continue falling this year by up to
2%. In terms of sales the full transaction figures for 2012 are not yet available but the FNAIM estimates that they will
probably have fallen by around 18.6% nationally.

 

But the figures do mask some regional differences. For example Languedoc-Roussillon recorded an overall 0.5% property price
increase with houses up by 1.8% in the fourth quarter of 2012 compared with the same period in 2011.

 

The Ile de France, the area around Paris also saw annual price growth, up 1.5%, but there is a difference depending on
property type. In the area house prices actually fell by 0.1% whereas apartment prices were up 2.6%.

 

Champagne-Ardennes was one of the few areas to see prices of both houses and apartments rise, up 0.6% and 0.9%, while Poitou
-Charentes saw apartment prices rise by 2.6% but house prices fall by 5.6%.

 

Even in PACA in the south of France which includes the French Riviera with its plethora of luxury property, house prices fell
by 0.6% but apartment prices were up by 1.7%. Picardie, Lorraine, Alsace, Centre, Nord Pas de Calais, Pays de la Loire and
the Midi Pyrenees all saw house and apartment prices fall.

 

However,The French themselves remain confident in their market with 77% of nationals surveyed in the latest European real
estate assets investment trend indicator 2013 from Ernst & Young agreeing or moderately agreeing that investment activity by
international real estate investors will increase in 2013 compared to 2012.

 

With prices down, agents believe that more international buyers might be tempted to take advantage of bargains. ‘The onset of
Spring in France has traditionally been the time that international buyers reappear looking to snap up a bargain. 2013 is no
exception and our agents are reporting increased activity right across France,’ said Trevor Leggett, chief executive of
Leggett Immobilier.

 

About Ray Clancy

Ray Clancy has 20 years experience in journalism including contributing articles to print and on-line publications such as PropertyWire.com, Property World Middle East and websites for estate agents. She has also written for the Daily Telegraph and Mail on Sunday.

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