If you are thinking of purchasing a property in France then
right now is the best time to do it. There are deals galore
at the moment with vendors in certain parts of France
accepting offers of 10% and sometimes 15% below asking
price meaning there are literally tens of thousands of
pounds to be saved by buying now while your bargaining
power is at its strongest.
This shift in the market can be seen all over France from
Poitou Charentes right through to some areas of the Cote
d'Azur and is especially evident for character village and
countryside homes which are the least in demand from the
local French population and therefore seeing the biggest
price reductions. British and Irish buyers who are
traditionally looking for this type of property are wasting
no time in taking advantage of this lull in the market
before prices kick on once again as they have done in the
previous five years. Other highly sought after areas such
as the popular ski resorts, commercial towns or tourist
hotspots are seeing far smaller price reductions from
vendors as demand is still high and will always attract
buyers.
The reason for this quiet market in France right now is not
easy to boil down to just one variable but two in
particular are likely to have had an effect: Euro interest
rates and large price increase over the last five years.
The Euro base rate of interest is now at 3% after last
month's increase bringing most mortgage interest rates to a
little over 4% p.a. which has taken the pace off the
demand. French buyers are now more cautious and wary of
another increase in interest rates wandering if there is
more of a correction in the market to come after the boom
in property prices in previous years.
New Build/off plan property is performing far better and
developers are having no trouble at all selling their units
and indeed are struggling to keep up with demand for French
residents and foreigners alike. Unlike other countries such
as Spain new developments are not as frequent in France yet
demand by French citizens for new homes which has
historically been far greater than for old homes sees no
sign of changing. This limited supply and excess demand
therefore keeps the new build market strong in France even
in times when market conditions are not at their strongest.
----------------------------------------------------
Nick Dowlatshahi is the Managing Director of Leapfrog
Properties who are a property agency specilaising in
helping the British & Irish buy property in France. Visit
http://www.leapfrog-properties.com to see our vast
selection of French property
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