Total Area: 551,500 km²
GDP (in billion USD): 2,776
France, officially the French Republic, is a unitary semi-presidential republic located mostly in Western Europe, with several overseas regions and territories. The French housing market is in trouble again, as the country struggles to bring down its record high unemployment rate and budget deficit.
House prices in Metropolitan France fell by 1.63% in 2012 from a year earlier, the third consecutive quarter of year-on-year declines, according to the National Institute for Statistical and Economic Studies (INSEE). When adjusted for inflation, house prices actually dropped by 3.12% over the same period. House prices dropped by 1.27% (-1.51% inflation-adjusted) in Q4 2012 from the previous quarter.
The housing market bounced back strongly in 2010, with house prices rising by 7.57% (5.82%). In 2011, the housing market started to slow, with house prices rising by just 3.66% (1.19% inflation-adjusted), mainly due to the adverse impact of the Eurozone debt crisis.
Demand is also waning. In January 2013, the total number of existing homes sales in Paris plunged by 44% from the same period last year, according to La Chambre des Notaires de Paris. Likewise, sales of existing homes in Petite Couronne (-28%), Grande Couronne (-25%) and Ile-de-France (-31%) all fell over the same period.