Opportunities to invest in France right now?
Time to buy in France?
According to the latest figures published by FNAIM - a major French real estate syndicate, it reveals that property sales in France fell by 25% in 2012. For those of you who have been searching for a long time for that ideal second home or investment property in France, 2013 could bring you the reduced prices you were expecting. It will surely provide many potential buyers with the perfect opportunity.
The combination of the following factors:
- Historically low mortgage rates therefore making the prospect of owning a home across the Channel becomes even more achievable. To support that, we have noticed that quite a lot of overseas mortgage providers have already seen enquiries for French property purchases increase significantly in the past couple of months. Of course many would-be buyers want to take advantage of these favourable rates.
- The number of sales calculated over the last 12 months since March 2012 has fallen by an average of 2% each month compared to the previous 12 months, according to a report published in January by the Notaires de France for the French Property Market Report. Data collected by the French estate agency federation showed that the regions of Brittany and Normandy were the most affected.
Experts believe that the poor economic climate, combined with asking prices that are considered to have been too high, contributed to the fall in sales. The difference between asking price and sale price was 5.08% in 2011, but this increased to 5.46% in 2012.
Interestingly, while the number of transactions fell in 2012, the figures also revealed that prices increased overall by 0.8%. Ile-de-France saw the biggest rise in prices with a 1.5% increase, while prices fell most in Lower Normandy and Brittany, with a drop of 5.7% and 5.3% respectively.
Regions such as Rhône-Alps are, however, bucking the downward trend in sales. Alpine property has been riding high in the popularity stakes, resulting in increased demand and sales. In Méribel, for example, the price per square metre has risen by 15.1% over the past year. A study of property market trends published at the end of 2012 by the Chambre Interdépartementale des Notaires de la Savoie et de la Haute-Savoie found that the region is weathering the economic storm and continues to appeal to overseas buyers as a second-home destination.