Housing Market in France for 2013
Friday 15 March 2013
France still remains the safest country to invest in troubled times, says Trevor Leggett, Chief Executive of national estate agents Leggett Immobilier.
In common with other European countries, last year was a tough one for the French property market with a falling number of sales and lower prices.
Overall, around 650,000 properties were sold last year, lower than in the previous two years, but still well above the 594,000 sold in 2009.
Both the FNAIM, the estate agents association, and the Notaires de France reported that prices across France fell between 1%-2% in 2012. However, this 'average price' statistic is fairly meaningless as France is made up of hundreds of smaller micro-markets, some of which weather the storm better than others.
The early indications for 2013 are that prices are continuing to fall - sellers have begun to understand that if they are sensible and understand that the market is slow they are able to sell. So it is most definitely a buyer's market, notably for countryside properties.
The latest figures from BNP Paribas show that sales to international buyers dropped off slightly last year but that these buyers had bigger budgets. This trend appears to be continuing, as we have certainly noticed a change in our buyer profile, with more families looking to move to France. Families need larger properties and often have bigger budgets as they are less reliant on savings and the pension system.
There was a short lived media frenzy after the announcement by the French government last year to make international buyers pay social charges on rental income and capital gains, but this doesn’t seem to have affected our sales this year.
France is not necessarily the most tax efficient country for entrepreneurs looking to make a fast buck. However, the fact remains that it is the most visited country on the planet and 79 million people a year (and rising) can’t be wrong. France has 37 UNESCO sites, some of the safest and prettiest beaches in the world, and ski resorts to suit all needs. The best wines come from France, with the food to go with it.
In troubled times it pays to buy in established and prime areas and France can be considered just about the most prime country in the world.
We have two tips for 2013.
The first is French farmland. The average value of agricultural land in the UK is currently £6,073 an acre, or £15,182.50 per hectare. At an exchange rate of €1.24 Euros to the pound that equates to over €18,800 per hectare. Compare this to agricultural land prices in France. Figures from SAFER, the French rural land agency, show that untenanted farmland cost an average of €5,430 per hectare last year – almost one third of the price of UK farmland. The price of English farmland has rocketed by more than 10,000% in the last 60 years and France certainly gives farmers a cheaper (and sunnier) option.
Our second tip is Alpine ski property. The Leggett ski team has seen a 300% increase in sales this year and mid-market buyers are back in the market for the first time in six years, with budgets of between €400,000-€800,000. We see this trend continuing with increasing demand from international buyers within this price range.
Leggett Immobilier is an English owned estate agency based in the Dordogne, but with offices and a portfolio of over 8,000 properties in 59 departments of France. The company has been in established for over 20 years. Come and visit them on their Stand at the French Village.
Next Article: Advertise Your Property
Thank you for showing an interest in our News section.
Our News section is no longer being published although our catalogue of articles remains in place.
If you found our News useful, please have a look at France Insider, our subscription based News service with in-depth analysis, or our authoritative Guides to France.
If you require advice and assistance with the purchase of French property and moving to France, then take a look at the France Insider Property Clinic.