The property market in France is beginning to show signs of stress although it has not been exposed to the US sub-prime crisis in the same way that other European markets have.
The national association of real estate agents is now estimating that property prices will fall 7% to 8% this year and that by the end of 2009 the decline could be as much as 15%.
A number of studies also show declining prices. The number of transactions during the first half of 2008 was down 25% from the previous year.
The industry is also being hit by job losses and financial problems. According to credit-insurance group Euler Hermes, bankruptcies of real estate firms soared 28% during the first half of this year.
