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According to property agents Century 21, French property prices have recovered to pre-crisis levels, with the average cost per square metre across the hexagon reaching 2,508 euros, just short of the levels seen at the start of 2008.

The company published a report today (6 July) that looked at prices from 23,200 transactions made during the first half of 2010, across its 900 agencies.  As of 1 July, prices of old properties showed an increase of 8.5% in one year, compared to the same period in 2009.

Prices in Paris have shot up by 15% over the last year, with the average price per square metre soon to hit 7,000 euros, but Poitou Charentes has shown the most significant rises with a 15.6% increase compared to the first half of 2009.

The current situation is said to have wiped out any estimated falls seen since the start of the financial crisis.  Fuelled by low interest rates and more agreeable lending conditions, the recovery in property prices is also said to be buoyed by the more favourable euro exchange rate against both the US dollar and Sterling, with American and British buyers being tempted back into smarter areas of the market. 

A note of caution though, the report says the situation could change with higher interest rates expected towards the end of the year, and public fears over the threat of unemployment possibly damping the domestic appetite for buying property.

A full summary of the report is available in an article on the Le Monde website.

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