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May 14,2008
 The Euro-American real estate market slump has reached France. Unlike some other countries, the market reaction in this key European nation is more complex. The recent market growth, although significant, approximately 100 percent between the mid-1990s and 2007, wasn't as prominent as in some other European countries. Therefore, the analysts expect, the slump wouldn't be as deep either. The market reaction in France, more interestingly, is two-speed. Paris keeps growing up, although at slower speed. Its suburbs and the French regions, however, are already moving in the opposite direction.
The new real estate crisis is real. In many countries, where several made fortunes on the real estate appreciation in the last few years, the properties are getting cheaper with every month passing. Among them, France, a key European nation, has seen its market reaching historic heights by 2007. Now, officially, it's over. The national market, in general, is moving down, by 3 to 5 percent in 2007 and probably by similar margin in 2008 too. Only Paris defies the general trend, being up by 10 percent in 2007, for how long, nobody can give good answer because the reason for this capital city exception isn't very well studied.
The main causes for the market 'correction' in France are very similar, if not identical, to those cited in other countries from both sides of the Atlantic. People in France say the market levels have attained are very high for their budgets; that the general purchasing power is down, making other spending higher priority; finally, the interest rates are generally up, even after the most recent easing. As a result, more and more among those that express some willingness to buy finally renounce to confirm their intentions.
There is something more than just material factors playing. The mood of the potential buyers has changed radically since 2007. People feel uncertainty, express doubts, and prefer waiting and seeing how the market will go further. An additional uncertainty comes from the governmental activity; after a year in office and the presidential and governmental mea culpa, nobody knows exactly what the new political priorities might be. And the government in France, unlike in some other western countries, has enormous potential to influence market forces in both directions.
Germany country profile
* Area: 643,427 sq km (547,030 sq km in metropolitan France).
* Population: 64 million (60.9 million in metropolitan France) (July 2008 est.).
* Population growth rate: 0.574% (2008 est.).
* Net migration rate: 1.48 migrant(s)/1,000 population (2008 est.).
* Life expectancy at birth: 80.87 years.
* Total fertility rate: 1.98 children born/woman (2008 est.).
* GDP (per capita): purchasing power parity $33,800 (2007 est.).
* GDP (real growth rate): 1.8% (2007 est.).
* Unemployment rate: 8% (2007 est.).
* Main trading partners: EU countries, the U.S.A.
* Internet users: 34.8 million (2007 est.)
Source: http://www.ired.com/ |
