Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Amnesty accuses Sudan of chemical attacks on civilians

Read more

EYE ON AFRICA

Nations vote to end all trade of endangered pangolins

Read more

MEDIAWATCH

Trump accuses Google of 'suppressing bad news about Clinton'

Read more

THE DEBATE

What's the deal with oil? Saudi Arabia's about-face on OPEC (part 2)

Read more

THE DEBATE

What's the deal with oil? Saudi Arabia's about-face on OPEC (part 1)

Read more

BUSINESS DAILY

Dublin courts post-Brexit business

Read more

FOCUS

Afghanistan's national unity government faces political deadlock

Read more

REPORTERS

World War I: When northern France was on German time

Read more

INSIDE THE AMERICAS

Mixed reactions to historic Colombia peace deal

Read more

Business

Housing sector picks up in second quarter

Text by FRANCE 24 (with wires)

Latest update : 2009-08-25

French government data released this Tuesday shows that the housing sector has started to recover in France, with sales of new homes during the second quarter of 2009 rising by almost 30% from a year earlier.

The French government released figures this Tuesday showing that new house sales have sharply increased in the second quarter of 2009.

 

Data reveal about 28,000 new homes were sold between April and July of this year, a 29.7% increase from the same period in 2008.

 

“This reflects a first step toward rebalancing the market”, state secretary for housing Benoist Apparu told the AFP.

 

A French analyst quoted by Reuters, Alexandre Mirlicourtois, said zero-interest loans and tax breaks had encouraged reluctant investors to explore the housing market.

 

An increase in sales has translated into a slender rise in properties’ market value. According to government data, apartments' average market value per square metre rose from 3,268 euros to 3,369 euros, while a house's average price notched up to 247,400 euros from 234,800 euros.

 

But while the sales data looks encouraging, the government also noted a 30% decrease in new construction permits for the second quarter of the year, compared to the same period in 2008.

 

Indeed, Mirlicourtois advises caution: “It would be an illusion to think that the house market will skyrocket as long as households' trust in a better economic future hasn’t returned. A decrease in interest rates matters precious little when compared with the prospect of losing one’s job”.
 

Date created : 2009-08-25

COMMENT(S)