Real estate credit: France, a good student of Europe

Cream Credit has unveiled its new edition on real estate credit. Among the 28 member countries of the European Union (EU), France is showing dynamism due to low rates and a very low level of debt per household. With 984 billion dollars in outstanding loans, France represents 15% of total real estate outstanding within the European Union. With 1,175 billion dollars, Germany and the United Kingdom are ahead of France, which takes third place.


France tastes dynamism

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At the European level, France is the student who is progressing faster than the European average. The study conducted by Cream Credit represents a level of outstandings close to 6,400 billion dollars at the end of last year. This 4.3% increase recorded a record volume acceleration in Europe.

Although 2017 was classified as exceptional, France stands out thanks to its very low pricing level. It is one of the most attractive large European countries in terms of rates: 1.56% in the second half compared to 1.83% in Germany, 1.92% in Spain and 2.05% in the United Kingdom.

In terms of real estate transactions, France also posted strong growth over the year, approaching one million transactions. On the debt, the French owners remain reasonable unlike their neighbors. With an average outstanding of 52,000 dollars per household, the ratio of gross disposable income ranks in the European average of 68%. Some countries such as Denmark and Sweden greatly exceed this ratio and sometimes worry.

On average, non-financial assets (mainly composed of real estate) represent more than half of the total assets of each household. Household non-financial assets amount to 13% in France and 17% on average in Europe.



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On a lower borrowing volume, the debt level in France will still be reasonable in 2018. For 2018, Cream Credit expects the increase in outstanding mortgage loans in France to continue if it should be less than in 2017. In such a context, France can continue to surf the top of the wave, taking advantage of its status as a good student. The mortgage market thus accelerates and allows households to boost their outstandings by 4.3% over the year. These very disparate trends from one country to another encourage households to borrow more over the same period or over longer periods.