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 The world's
financial and economic crisis excited the real estate market in different countries,
on the one hand, since the real estate is an evident security to save the money
assets which, shifted into the immovable property, are no longer affected by
inflation and other market perturbations as the paper currency. However, with such
an incentive, the real estate is losing its worth almost in all countries, yet
many banks wind up mortgage and crediting programs.
Yet, the
capital of France has been experiencing this difficulty. The real estate falls
in price, and it is not demanded that higher as before.
Real estate
companies in France announce that since 2007 the real estate boom came to its
gradual end not only in Paris but throughout France. Only the immovable property
at Cote d'Azur is steadily demanded but in Paris there was check to prices for
real estate in 2007, then it fell to zero. Within the year 2008, the prices for
French real estate fell to 10% under the estimation of French real estate
brokers.
According
to the official sources the prices for the real estate in Paris are steady, and
the property is still demanded. In spite of the time of crisis, the steady
breakthrough is still observed. It is not
that higher as it was earlier, only 2,4% per year, though price goes up not
down.
Nevertheless,
the international expert companies state that there is nothing to do with
breakthrough for real estate in France. Foreign market analysts agree with the
French colleagues that prices are going down definitely. The figures differ
from country to country, though.
The prices
for the real estate in France go down especially in areas of good address. The point
is that the elite housing has been acquired by investors from other places than
Europe. The French government reported on
the results of the survey held earlier that the elite housing is acquired by
24% natives of USA and Canada, 35% natives of South America, and 42% natives of
Middle East, Asia and Africa.
Consumer demand
falling and considerable drop in income in the whole world affected the demand
for the real estate in France either. Moreover, investors do not feel like
purchasing immovable property by the previous prices. This is important to know
that the landslide of prices for the real estate was significantly affected by winding
up of mortgage programs by banks, more strict requirements to borrowers and
unfeasibility to render crediting services by banking institutions.
Middle class
purchasers do not find the real estate in France beneficial while immovable
property in Paris failed to attract investors. Though sometimes expensive and
prominent real estate objects are purchased exclusively in the sector of the
elite housing.
Currently
the real estate brokers in Paris expect rise in demand for the real estate.
Since now, when the demand is decreased for 20% with prices falling gradually,
the average purchasers feel opportune to get the housing that they could not
afford earlier. Good old rule of all broker's houses to buy at fall and sell at
rise. Yet, the stagnation periods are customarily promising for those who tend
to purchase.
Rise of
interest to the real estate in France is anticipated in summer and autumn of
this year. Experts suppose that by this time the market of the French real
estate will have come to its end and investors will start long-awaited
purchases. Presently the apartments in new developments in the outskirts of
Paris cost within 70 to 100 thousand Euros. This is cheaper than it was two
years ago, though a little bit more expensive as «crisis» investments.
Especially as the crisis at funds markets and other shocking events in the
economical sphere cause potential real estate investors ride on the fence.
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