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France
France
Annual increase: 9.5%

Paris has long been known for stylish people, delicious cuisine and universal health care. And let's not forget some of the priciest real estate in the world.

Home prices have surged in France, thanks largely to the thriving real estate market in Paris amid ultra-low interest rates. While prices across France on average rose only 1.5% in 2010, prices in the Paris area skyrocketed 15.7% according to the national residential real-estate broker's lobby FNAIM.

But prices could soften some in the future. Last month, Bank of France Governor Christian Noyer warned prices could be in for a correction as euro area interest rates rise, making the cost of borrowing higher.



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Last updated April 28 2011: 12:31 PM ET
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