House prices in Paris fell to their lowest level in four years. Offer values in September 2023 fell by 4.1% year-on-year to EUR 10,936/sq m – the lowest level since January 2019, according to Le Figaro. This is the sharpest annual decline in at least a decade.
In Paris, the lockdown caused by the pandemic has caused some people to move out of the city. Several changes in lending rules also limited funding for potential investors.
French banks are not allowed to issue mortgages above the maximum interest rate, known as taux d’usure, which is set by the Bank of France. This restriction resulted in the rejection of loan applications of some of the customers.
To facilitate access to credit in the country, the marginal interest rate was revised monthly in the first half of 2023, rather than every quarter as before.
Paris homeowners will also face a 52 percent property tax hike this year, which Mayor Anne Hidalgo justified last year on the basis of rampant inflation and rising energy costs.
Despite a steady decline in home prices, Paris remains the most expensive housing market among major European cities, more than twice the level of Madrid and Berlin, Bloomberg analysts wrote.
You can see detailed statistics on the average property prices in Bulgaria by cities and districts HERE
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2023-10-04 17:47:00
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