• France's news in English
Property ladder now out of reach for many French
Photo: AFP

Property ladder now out of reach for many French

AFP · 11 Dec 2014, 18:05

Published: 11 Dec 2014 18:05 GMT+01:00

Facebook Twitter Google+ reddit

The chances of buying property in France are dwindling, according to a new study by the Paris-Dauphine University and mortgage specialists Crédit Foncier.

The report revealed that despite lower interest rates household the spending power to get on the property ladder has gone down significantly between 1998 and 2010, leaving the dream of owning a house or apartment out of reach for many.

In 1998 some 44 percent of households in Paris were able to afford a property corresponding to their needs but that figure dropped to only 27 percent by 2010.

And it's not just Paris that's affected, indeed all of France's major cities have seen a drop in the capacity of locals to get on the property market.

Marseille takes the lead with a loss of 42 percent drop in the property buying power of locals within the 12 year time frame, followed by Paris with 39 percent, Lille with 25 percent and Bordeaux with 24 percent.

"The decline of the real estate buying power is mainly due to the increase in property prices and the impact of the crisis in recent years," the study read.

Wages may have increased by 23 percent on average from 1998 to 2010 but housing prices doubled within the same period.

"The rise in house prices was not accompanied by a similar increase in wages, although the increase in loan terms and lower interest rates helped increase the solvency of households," the study added.

People in their fifties and sixties have the best chances of acquiring property whereas the dream is much less likely to come true for those in their thirties.  

Only half of 30 to 35-year-olds are in a position to buy property corresponding to their needs in a regional city. In Paris it’s a mere seven percent.

As for the average 55 to 60-year-olds, some 75 percent have enough purchasing power to acquire property in regional cities and some 50 percent could get their hands on one in Paris.

Chances of buying property in Paris are low for the average 20 to 25-year-olds whose purchasing power is near zero in the capital. 

However there is some good news for those desperate to buy property in Paris.

As well as interests being low, the astronomical prices of property in the French capital continue to fall.

Story continues below…

According to a real estate report this week property prices in the French capital have fallen 3.5 percent since the start of summer.

After falling around 1.5 percent in July and August the trend has continued with a one percent drop in September, according to the report by MeilleursAgents.

Since March 2011, when the housing market peaked, prices in the capital have dropped by a whopping 9.1 percent. Good news for buyers, not so positive for homeowners.

by Simone Flückiger

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
France’s 'Jungle' children arrive in UK
Authorities will start to clear the ‘Jungle’ migrant camp on Monday. Photo: Denis Charlet / AFP file picture

The first group of children from the French "Jungle" migrant camp with no connection to Britain have arrived in the country, the Home Office said Sunday, ahead of the camp's planned demolition.

French FM calls for end to Aleppo 'massacre'
French Foreign Minister Jean-Marc Ayrault says the international community cannot ‘come to a negotiation under the bombs’. Photo: Dominick Reuter / AFP file picture

France's foreign minister urged the international community to "do everything" to end the "massacre" in the Syrian city of Aleppo on Sunday after fighting resumed following a 72-hour truce declared by Damascus ally Russia.

French cheer police, reviving Charlie spirit
French police officers on Saturday demonstrated for the fifth night in a row to protest mounting attacks on officers. Photo: Thomas Samson / AFP

Angry French police have taken to the streets for five nights in a row -- and Parisians have started to cheer them on, reviving scenes last seen following the Charlie Hebdo attacks in 2015.

Scarlett Johansson turns popcorn girl in Paris
US actress Scarlett Johansson greets customers at the Yummy Pop gourmet popcorn shop in the Marais district of Paris. Photo: Benjamin Cremel / AFP

Hollywood superstar Scarlett Johansson swapped the red carpet for a turn behind the counter at her new popcorn shop in Paris on Saturday.

US couple donates huge art collection to Paris
Marlene (centre) and Spencer (right) are donating their collection ‘for the benefit of art lovers’. Photo: Thomas Samson / AFP

A Texan couple who discovered their love for art during a trip to Paris in the 1970s are to donate the multi-million dollar collection they have amassed since to the French capital.

France to clear 'Jungle' migrant camp Monday
Migrants will be bussed from the camp to some 300 temporary accommodation centres around France. Photo: Denis Charlet/ AFP

The "Jungle" migrant camp on France's northern coast will be cleared of its residents on Monday before being demolished, authorities said Friday.

How life for expats in France has changed over the years
A market in Eymet, southwestern France. Photo: AFP

Foreigners in France explain how life has changed over the years.

London calling for Calais youths, but only a chosen few
Photo: AFP

Dozens of Calais minors are still hanging their hopes on help from the UK, but not all will be so lucky.

17 different ways to talk about sex in French
Photo: Helga Weber/Flickr

Fancy a quick run with the one-legged man?

Yikes! This is what a rat-infested French jail looks like
Photo: YouTube/France Bleu TV.

This video is not for sufferers of ratophobia (or musophobia as the condition is officially called).

Sponsored Article
How to vote absentee from abroad in the US elections
Why Toulouse is THE place to be in France right now
Sponsored Article
Last chance to vote absentee in the US elections
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Sponsored Article
How to vote absentee from abroad in the US elections
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
Welcome to the flipside: 'I'm not living the dream in France'
Do the French really still eat frogs' legs?
French 'delicacies' foreigners really find hard to stomach
French are the 'world's most pessimistic' about the future
Why the French should not be gloomy about the future
This is the most useful French lesson you will ever have. How to get angry
Why is there a giant clitoris in a field in southern France?
French pastry wars: Pain au chocolat versus chocolatine
Countdown: The ten dishes the French love the most
Expats or immigrants in France: Is there a difference?
How the French reinvented dozens of English words
The ups and downs of being both French and English
How Brexit vote has changed life for expats in France
Twelve French insults we'd love to have in English
What's on in France: Ten of the best events in October
jobs available