Report on current French property market environment
Good news.Buying a property in France has become even more affordable. Property prices are lower, and due to the slower market, there are many motivated lenders who are open to negotiation.
The current news people can read in the media could dissuade potential buyers from purchasing properties in the UK or in France. Therefore it is important to clarify the situation on the French market and provide you with an overview of the positive aspects the real estate market has to offer in 2013.
Some positive outlooks have been highlighted by a recent report on the property market, published by Notaires de France in January 2013. They are the following:
According to Notaires-INSEE estimates, prices of existing houses have dropped by 1.5% in a year time in French Province and by 1.2% in Ile-de-France. Indeed between the second and third semester 2012, prices of existing houses in Ile-de-France have dropped by 1% in Seine-et-Marne and Val-d’Oise, and by 2.9% in Seine Saint-Denis. In Province, main cities and towns have registered drops by up to -5% and even more in cities such as Limoges: (-10%) and Brest (-9%). Therefore the figures given show a downward trend in Province and a stabilisation of existing house’s prices in Paris intramuros in 2012 and beginning of 2013.
As for interest rates they have continued to decline and reach in average 3.31% (i.e. 3.35% for the new home market and 3.26% for the existing market). Since March 2012, the fall has reached 64 points.
As mentioned above, the real estate market in general has not escaped the crisis, as evidenced by a general fall in transactions. However, as a consequence, prices of existing apartments and houses have fallen.
Apart from this downward trend, the ski market is an exception and turn out to be the locomotive of French Alps. The French Alps market abounds with holiday homes, mainly because of the exceptional panorama the region has to offer. Increase in foreigner’s visits and top of the range properties have lead main ski resorts such as Courchevel and Val d’Isere to give it priority in their forthcoming projects. As a consequence, beyond a European clientele, they are now in the lookout for an international clientele.
In a nutshell the resale market is in better shape than the new market. As for Niche markets they stand out from others thanks to differentiation.