France: Some useful economic indicators
This memorandum is intended as a tool in the analysis of real estate markets in France.
It begins with a brief comparison of France and some other important economies, using some available indicators. It then looks within France to compare different cities and regions.
It does not analyze real estate prices, but is intended as a background for eventual analysis.
The underlying hypothesis is that real estate values eventually follow the fundamentals. Through speculation, depression, overbuilding and shortage, real estate prices reflect the longer-term trends of economics, wealth creation, and population and employment growth. Of course, there are other determining factors. These include a preference for predictable legal and tax systems and long-term preferences for certain countries and cities, where markets are considered to be desirable, reliable and liquid. Nevertheless, underlying economic trends are more than a starting point for considering alternative markets.