France makes strong recovery in property market

Trevor Leggett of Leggett Immobilier commented on recent news item regarding the French market and France being one of the first countries alongside Germany to come out of the recession.

“France is certainly getting back on its feet, there is renewed confidence in the economy, with Sarkozy and Merkel high in the poles, likely to be voted in for a second term gives stability and confidence to nationals.

House prices have come down in certain parts of provincial France by at least 25%, making this a great time to buy, interest rates, mortgage rates and property prices are at an all time low, and property prices are no longer dropping, thus encouraging buyers to buy now. Sterling is still weak against the Euros, so British vendors in France are reducing their prices to cash in on the strong euro when moving back to the UK. Quick sales are happening in a rush to beat the pound increasing, which is inevitable next year. It really is a buyer’s market and while supply outstrips demand it will remain so.

French banks are much more flexible with their lending now and are offering much more choice of products that before.

We believe this is being driven by French buyers, not foreign buyers, although 50% of the current foreign buyers in France are still British (Perval 2009 Notaires official statistics). Tax cuts and incentives including the French version of MIRAS, which although made some time ago are just starting to take effect and lower inheritance taxes, are making a real estate investment more attractive to the French.

National infrastructure projects have been signed off (LGV west) this is encouraging investment from Parisian clients who will be closer than ever to Paris buying second homes or commuting.

Leggett Immobilier has seen a huge increase in appointments and enquires in August, which is usually a quiet month being the holiday season, it seems buyers know that there are bargains to be had and don’t want to miss out on the opportunity of getting one! Sales are starting to come back in again and the market seems to be on a roll!”

For more information, visit frenchestateagents.com