Property market slows in capital
Properties are remaining unsold for longer and prices are dropping, a study shows
THE property market is slowing down in Paris and Ile-de-France.
According to a study by property website meilleursagents.com the time taken to sell properties has “doubled” compared to last year and volumes of sales are down around 15-20%.
Site founder Sébastien de Lafond said: “The property market at the start of 2012 doesn’t look like it did at the start of 2011 – there are fewer sellers and above all fewer buyers”.
He said there is much more negotiation taking place.
Prices are also dropping – down 0.4% in Paris in January compared to the month before, according to latest “monthly barometer” by the site, which is run by estate agents and statisticians.
Prices are down more in the surrounding departments – an average 0.5% for the Petite Couronne and 0.6% for the Grande Couronne. They dropped most in the Hauts-de-Seine (1.2%) but were slightly up (0.1%) in Seine-Saint-Denis.
Factors contributing to a slowing of the market are the fact that the government’s interest-free loan is no longer available to people buying non new-build and banks are also being more cautious about lending.
A “wait-and-see” attitude in the run-up to the presidential elections is also having an effect.
