Paris Property is it Up or is it Down?
11 July 2011
It is 5 years or there about since the festering disease that was the US financial services sector went virile and crippled the US housing market and then the economy. It is 4 years or there abouts since this contagion spread across the Atlantic and caused our banks to falling ill, and finally to start dying off. At the same time as it was hitting the UK it was hitting countries around the world that had been reliant on US or UK investment, or even worse for those that had invested too heavily in US mortgage backed securities.
4-5 years later you would expect things to be starting to stabilise. But, while there are clear signs of stability in some places and sectors, there are also screaming signs that things are still very very volatile indeed.
This week's news about Paris is a prime example of the latter. In one report we have French television reporting that Paris is one of the best places to invest in property in the world. The report said this because London based global agent Knight Frank named Paris the fastest growing city in the world, with 22% price growth year on year in Q1 recorded in its first ever prime city index.
Meanwhile statistics recently released by Databiens.com show that prices in Paris fell 3% in the first five months of 2011. Gilles Martinetti, director of Paris property finders Papaty talking exclusively to OPP, said: "The market will continue to slow, though not dramatically. Prices may fall 5% in the next three to six months. It could reach 10% by the end of the year but that's very unlikely."
"Good properties are still selling relatively quickly - within two to three weeks - but prices are definitely more negotiable than before."