PROPERTY prices in France rose by 3.8 per cent in 2007, the lowest increase since 1998.
In its report for the past 12 months, the Federation Nationale des Agents Immobiliers et Mandataires (FNAIM) said that a low pouvoir d’achat, or purchasing power, was one of the major reasons behind the slow down, as interest rates for mortgages were at a favourable level.
FNAIM's figure for 2007 compares to recent average price increases of 15.4% in 2004, of 10.4% in 2005 and 7.1 per cent in 2006.
In comparison figures from the Halifax showed an annual increase of 5.2 per cent in 2007 for the UK, only the second year since 2001 that prices rose by less than the long-term average of 8 per cent.
FNAIM group both apartments and houses into their overall figure, but splitting them apart shows that the average price for apartments rose by 3.3 per cent and for houses the increase was 4.3 per cent.
Regionally it was interesting the see that the north and east outstripped all other regions of France expect the always popular south east when the rate of increase over the past 12 months was compared - is the Eurostar having an impact here?
% increase 2007
Ile de France: 3.6
Nord et Est: 4.9
Sud Ouest: 3.8
Centre et Alpes: 3.1
Sud Est: 7
You can download the FNAIM Lettre de Conjoncture Jan 2008 (.pdf) and take a look through the full findings from 2007.