New Home sales are accelerating in France

Finance Property
New home sales are accelerating in France

New home sales rose 25.1% in the third quarter 2016 in France, a rate higher than the first half (22.7%), according to figures released Thursday by the Federation of developers (FPI) .

31,824 new homes sales were reserved on July-September against 25,436 a year earlier. The third quarter 2015 is itself an increase of 15% compared to the same period in 2014.

This is the eighth consecutive quarter of increase after the 2012-2013 reductions and early 2014. The Federation of developers stressed that the market is now close to its 2010 levels.

The activity of the fall was brought mainly by sales to individuals (27.6%), especially for homeowners (28.1%) and investors households (27.2%).

Interest loan

The REIT emphasizes that in the current environment of low interest rates, the announcement from April, maintaining the zero interest loan and aid for rental investment for 2017 “gave the market enough visibility to avoid an of ‘stop and go’ short term ‘.

Always in the third quarter, housing sales of new homes also rose but at a rate (4.5% to 19 847) significantly lower than sales, so that the available supply decreased by 0.6% to 10.1 months of theoretical marketing against 12.4 a year earlier and 14 months in 2014.

Rising prices

“This national average hides a particular tense situation in several major cities, where the stock can drop to seven months,” says the federation.

It emphasizes once again the need to “loosen the constraints on supply” as the scarcity of land, the increasing regulatory complexity and misuse of appeals.

Inadequate auctioned facing increasing demand has an impact on prices, which rose 3.4% over the last twelve months, the increase reached 4.9% in Ile-de-France.

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