Positive Prospects for Property in France

Unlike in Spain, the property market crash in France has been far more tempered and gentle!  Whilst there have been sales by vendors forced to sell at almost any cost, the majority of the market has seen an easing rather than an almighty crash, and the bottom has certainly not dropped out of the real estate market in France.

There are pockets where prices have dropped further than the national average trend, suggesting that these were areas oversold and perhaps inflated by the likes of British buyers in the past.  But generally speaking, the average drop off in prices stands at ‘only’ 2.5% over the past year.

This is positive news for those who already own homes in France, and there has been more positive news thanks to the Organisation for Economic Cooperation and Development (OECD) that advises that the overall economic slowdown in France is beginning to ease.

If you own a home in France but are an onshore Brit, the time could perhaps not be better to sell your property if you’re thinking of exiting the market.  The news from the OECD that the economic slowdown in France has eased could point to an improvement and even a turnaround in France’s fortunes in the near-term at best, or a period of stability and at least a pause in their decline at worst.  This should translate favourably for the property market and perhaps bring more buyers back to the table.  For Britons with a weak pound who are selling in a strong euro, now could be the time to make that sale if indeed you were thinking of selling up your French property assets.

The indicators examined by the OECD when looking at economic prospects include production levels, the size of order books, labour market indicators and domestic trade, and these were so much more positive than in recent months that the OECD charted a 1.2 point increase in France’s potential fortunes in April of this year.

According to a report in the Times, the median decrease in property prices in France has been just 2.5% over the last twelve months, with locations in regions such as Provence suffering up to a 6% decrease as these were areas boosted by a high percentage of foreign buyers.  Elsewhere, properties on the Cote d’Azur have perhaps faired worse proportionally speaking, as so called trophy homes in places such as Cap Ferrat are now selling for up to a tenth of their former value!  Of course, only desperate vendors will be selling at such a loss – and they will be selling to a tiny market of buyers who will be able to name their (still very high to the likes of you and me) price!

So, what can we conclude from all of this?  Well, if you’re a billionaire in search of a trophy property, call your agent and get them to put in some daft offers on some stunning properties.  And if you’re the owner of a more ‘normal’ home in France that you’d like to sell, perhaps now is a good time to place your property on the market.  As for whether now is a good time to buy – well, it depends on why you’re buying.  If you’re buying to make short-term gains by flipping your property for example, we doubt that you’ll be best off looking at the French real estate market.  If on the other hand you’re looking for a lifestyle retreat or a new home, now could well be a good time to buy.  Whilst indicators suggest France’s economy is more robust than many, everyone is still aware that buyers are in relatively short supply.  Therefore, anyone who really needs to sell and get their money out of the market will be open to quite cheeky offers.  You just have to look around, try your luck and target vendors who need to sell.