After nearly four years of continuous growth, Paris home prices are finally slowing down and, hopefully, they're reaching a plateau that will remain in effect for quite some time. We here in the United States have firsthand experience when home prices get out of control and we wouldn't wish that kind of occurrence on anyone else.
Paris home prices, which have risen 37 percent since 2009, are set to end their upward streak as French President Francois Hollande cuts property subsidies and raises taxes.
Government support for the housing industry ranges from lodging subsidies for students to tax breaks for renovation works and public construction, which totalled 45 billion euros ($59 billion) in 2011, or 2.25 percent of gross domestic product. Hollande is withdrawing some of that help as Europe’s second-largest economy is on the brink of a third recession in four years, hurting property investors such as Bouygues SA (EN) (EN).