Luxury Real Estate

Nicola Christinger of Home Hunts SARL

The property market in France is likely to be boosted by the news that the country has come out of recession. The announcement of new air routes from key British destinations to four cities in the south west of France is also set to encourage buy to let property investors and those searching for holiday homes in France.

An examination of statistics from Notaires shows that is French buyers who are set to lead the property market recovery although 50% of current foreign buyers are still British. Many of HOMEHUNTS partner agents are reporting an increase in appointments and enquires in August, which is normally notoriously quiet.

France`s property market has been less affected by the recession than many other countries due to the fact that there is a strict policy on lending in the country which has meant the sub prime problem has been minimised. Of course there has been a knock on effect around the globe and it is estimated that residential property prices in some parts of France have fallen by up to 25%. Popular hotspots like the Cote d’Azur, Paris and Provence have seen smaller price falls and a steady flow of sales. The fact that prices have been adjusted over this past 12-18 months alongside the fact that interest rates and mortgage rates are at an all time low makes France an interesting prospect for buyers at present.

The setting up of a new base by Ryanair at Leeds Bradford International Airport will see new routes opening up to Carcassonne, Limoges, Montpellier and Nantes, making these areas more accessible for buy to let property investors, Montpellier and Nantes, in France.

Recent closures at the London stock exchange have recorded their highest level this year after an unexpected return to growth in France – one of the eurozone’s powerhouse economy. This has boosted hopes of recovery from the severest financial crisis since the 1930s. France reported that output had grown by 0.3% in the three months to June – bucking market fears of a fresh contraction in activity and far exceeding the performance of the UK.

According to Martin van Vliet, economist at ING bank: “There is a more than decent chance that eurozone economic activity has now hit a bottom and will expand again in the third quarter, as many other eurozone economies follow Germany and France out of recession”