French Property Trends – April 2010

Recent surveys reveal that the British own more second homes in France than any other nation.

British house choice in France:
Highest % per department

Limousin: 24 %
Brittany: 20 %
Languedoc: 12 %
Pays de la Loire: 12 %

Statistics reveal that foreign property buyers in France are dominated by the Brits with 23.4 % of transactions, followed by the Italians (12.2 %) and Belgians (8.8 %). It would seem that 80 % of non-resident purchases are concentrated in the following regions: Limousin, Brittany, Languedoc-Roussillon and the Pays de la Loire. The south of France and the tourist regions attract the most non-resident purchasers. Buyers seem to prefer rural departments and are heading for more localised areas such as Limousin.

The general trend among European second homeowners is to purchase a property close to their country of residence. This is certainly true of British buyers, where statistics show that two of the most popular areas are Brittany and Pays de la Loire. This is closely followed by the South West of France. Popular departments across France include: Cotes d’Armor, Finistere, Aude, Herault, Maine et Loire, and the Haute-Vienne.

Sextant has launched its very own French Property Index which is based on their portfolio of 10,000 properties throughout France. The following statistics are based on this Index.
The favourite location is Limousin, representing 24 % of properties purchased across France. The average cost of a house in the Limousin department is 216,614 €, making it one of the cheapest areas to buy a property in France. There tends to be a strong attraction to the tranquillity and peace of the rural areas. A further attraction in this particular area is the anticipated opening of the new airport in Brive la Gaillarde. This should see prices in the Correze department increase, especially in the villages in very close proximity of the airport.
The Cotes d’Amor department is located in Brittany in the north west of France. It is a popular location with British ex pats and is ideally located for access across the channel via the ferry or the euro star.  Brittany represents 20 % of properties purchased across France. The average cost for a house is now 201,590 € and even though this isn’t this year’s hotspot, it was the second favourite location. Finistere remains another favourite, as prices are generally cheaper here.
The regions of Languedoc Roussillon and Pays de la Loire are the third most popular places for purchasing a property; each representing 12 % of properties purchased across France. The average cost for a house in the Languedoc region is 320,449 €. Although the Aude department which covers Perpignan and Carcassonne is generally cheaper than the Herault department they are both still popular locations with buyers going in search of sunshine, fine wines and good food.
The Pays de la Loire is situated between Brittany and Poitou Charentes on the western side of France.  Buyers are attracted by its varied environment: the area offers 300 kilometres of Atlantic coastline, long sandy beaches, enchanting bays as well as lush, green, countryside through which flows the magnificent river Loire. Its great location for access across the channel further attracts British buyers. The average cost for a house in Pays de la Loire is 255,320 €.

With the real estate market in France now rebounding, British buyers are becoming more and more inclined to realise their dream and purchase their ideal French property. While bargains remain, prices have started to increase although at a much slower rate than in 2008. French property is still a prime target for buyers seeking a residence in France searching an enriched lifestyle, and now, a sound investment can be acquired at a fair price.

As it stands at the moment with huge potential affects looming on the housing market, British buyers are awaiting the results of the general election in May before making any concrete plans.
Not only is there a  huge potential increase on the stamp duty, but if there is a hung parliament then there will generally be uncertainties over the future direction of the economy and UK housing market.
At Sextant we believe that the properties we have sold at the beginning of 2010 are with buyers who cannot wait to move to France, regardless of the results of the general election. The majority of those sitting on the fence prefer to wait for the results of the general election even if they won’t have an impact on French property prices.