Taylor Scott International News
There is a renewed optimism in France’s residential property market which has led to a significant upturn in sales, according to a new analysis report. A new analysis points out that a more stable economic outlook in the country, which is still popular with overseas buyers, has filtered through into buyer sentiment. The latest data from international real estate firm Knight Frank shows that sales in France doubled between 2014 and 2015, whilst enquiries from prospective buyers increased 87% year on year. It also points out that the figures from the Notaires de France, backs this up, with the most up to date statistics showing sales across the country have increased by 12.5% year on year. The analysis also points out that with favourable mortgage rates of around 2.3%, prices stabilising in most prime markets and the euro weak against both the pound and the US dollar, buyer confidence has strengthened. But this confidence is price dependent. Sales volumes are strongest within the €1 million to €5 million price bracket but transactions above €5 million are slow. According to Mark Harvey, head of Knight Frank’s French department, two indicators underline the extent to which the market has shifted in the last two to three years. Firstly, the performance and convergence of France’s prime prices and secondly excess supply is being absorbed. ‘Not only have prices reached their floor in the majority of France’s key second home markets, but all of our five regions saw prices shift within a range of only 5%five percentage points. For several years we saw a marked disparity between France’s strongest and weakest markets, this has now all but disappeared,’ he said. ‘The excess supply that was evident for several years in areas such as Gascony and Provence has now largely been absorbed back into the market. Add to this the slow recovery in house building it is possible that when prices start to pick up they could do so relatively quickly due to limited stock levels,’ he explained. Another key factor for the recovery of France’s property market is that British buyers are back. The British own more second homes in France at 69,000 than in any other European country. ‘Given the lifestyle on offer, France’s proximity and the currency advantage in recent years it is perhaps no surprise that the British are active once more and represent a key source of demand in all of our markets,’ said Harvey. He also pointed out that equipped with a strong dollar, American buyers are also increasing in number, particularly in Paris and parts of Gascony, whilst Evian continues to be in favour with high net worth buyers from the Middle East, drawn to its lakeside living and easy access to The Alps. Demand from domestic buyers has also strengthened. ‘Faced with lower purchasing power abroad, a more positive political sentiment, cheap finance and good value, particularly in Paris, French buyers are seeking a slice of their capital’s real estate,’ Harvey explained. ‘Across France interest… Taylor Scott International
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