House price Increases in France by Region 1995-2003

Languedoc has the fastest growing house prices in France
Every year since 1995, the FNAIM, the French National Association of Estate Agents, has conducted an annual snapshot analysis of the price trends in French real estate. The figures for 2003 make interesting reading. Languedoc has on average the highest price increase. However the explosive growth in and around Montpellier has had a disproprtionate effect on Languedoc prices and this should not be seen as a guide for expected price increases in the Aude or other parts of the Languedoc.
The market overall
On a national level French property has seen a record increase of 14.2%. This compares with growth of 9.2% for 2002 and 6.5% in 2001. The rate of increase slowed a little towards the end of the year.
These figures include apartments and houses with apartments rising more strongly at +17.5% against +11.3% for houses. In fact, 2003 would have been a great year to buy into studio and 1 bedroom apartments as this sector of the market increased by over 22% across France as a whole!
The regions - growth
So which regions are the most expensive and are where should buyers look for bargains?
The following table, taken from the study, shows the annual house price increases by region for the last 12 months and for the period 1995-2003. From this you can see that the really big increases have come in the Languedoc-Roussillon (+28.4%) , the Rhone-Alpes (+18.2%) and Burgundy (+16.7%). It’s interesting to note that although Burgundy has seen a big increase in prices it is still the third least expensive region in which to buy a house. Other regions popular with expats showing strong growth include Midi-Pyrénées, Aquitaine and Provence Alpes Côte d’Azur.
The regions - costs
Costs are measured in Euros per square meter, with the national average for France for 2003 standing at €2267 per m2 . On this basis, as far as costs are concerned, the cheapest regions of France are Limousin, Auvergne and Bourgogne in that order. The Limousin stands at about half the national average. No wonder bargain hunters are heading for Limoges airport in greater and greater numbers. Not surprisingly the most expensive areas are Provence-Alpes Côtes d’Azur, Ile-de-France (including Paris), Corsica, Alsace and Languedoc-Roussillon.
2004 - increase to continue?
So what about 2004? The official predictions are for continuing growth but on a less dramatic level. However, for the expat buyer there are quite a few factors which suggest prices are going to carry on rising strongly:
- More and more families moving full-time to live in France
- Continuing growth in second-home ownership
- An increasing interest in France for investment property purchase
- Availability and affordability of mortgages for French domestic buyers