Urban violence should not bring down property prices in France, including the departments most affected by the riots, because, according to industry professionals , the structural shortage of housing.
"Apart from these economic events, it is structurally strong demand for housing remains. This could slow down the prices very occasionally but I do not believe at all in a market downturn, "suggests Anne Chenu, communications director of the National Federation of Real Estate (FNAIM).
"There is a basic need of housing, she says. The residents do not flee the suburbs and people will not give up to move there. "She said the presence of difficult neighborhoods has never prevented anyone from moving to the cities of sensitive cities.
Frederic Dumont, who leads a major study notarial Montreuil en Seine-Saint-Denis, shares the same sentiment. "It will undoubtedly have an impact on the evolution of property prices in France but it will be weak or nonexistent, because these problems mentioned do not appear with the riots, "he said.
Stressing that some buyers did not hide their reluctance to live in certain neighborhoods, he believes that they will be more vigilant, but only with respect to very specific areas, "islands where in any case, there was a lot of housing Social and thus few assets to acquire. "
In his study, the 30 employees who handle more than 3,000 procedures per year, have not found these days of knee-jerk reactions, concerns even breakage of their clients. "I even believe that the riots could have a beneficial effect," suggests Mr. Dumont optimistic, given the announcements of rehabilitation and is now expected acceleration of housing programs. Result: professionals still do not believe a collapse in prices, but simply a deceleration in 2006, rising prices throughout France.
In October, former real estate prices continued to rise by 11.4% compared to October 2004, according to statistics FNAIM. But the rate is now lower than that observed in 2002. In 2004, prices real estate had increased by 15.5% and FNAIM table for 2005 with a rise of about 10%, consistent with the soft landing scenario that provides for months. The real estate network
Era, which includes more than 350 branches in France, also put on further price rises accordingly, says a spokeswoman, that France is the European country which has the lowest rates of individual owners (57%). "People are always more numerous in wanting to own," she says.
professionals still expect the next statistics to refine their initial impressions. "In three months we will visibility of the market. Today, it remains premature because we are still in the heart of the phenomenon, "says Ms. Chenu.
Urban violence that began Oct. 27 spread to 300 communes and about 8,800 vehicles were torched. Delphine Touitou
- AFP
16/11/2005
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