ABSTRACT
The French taxation system grants different advantages to owners according to the type of deal, for purchasing a main residence for owner-occupiers, and for purchasing housing with the intention of renting it for lessors. In Paris in 1990, the average housing rent increased by 7 per cent, compared with 5.2 per cent for the whole of France despite the fixed increase rate set at 3 per cent by the government for Paris for all current leases. Trends for prices in the urban property market are different in the Paris region and in some other large cities compared with the rest of France. The activity of the property broker is essentially based on speculation and so involves high risks. With deregulation, uncertainty and risks have reappeared in the real-estate markets, so market conditions conducive to speculation can develop more freely as the agents no longer have any point of reference.
