Tag Archives: france
British buyers returning to French property market
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… Continue reading
Irish property prices dipped slightly in January but growth set to continue in 2016
Residential property prices in Ireland are up 7.6% year on year but fell by 0.5% in January, according to the latest index figures to be published. The data from the Central Statistics Office shows that the annual growth of almost 8% compares with an increase of 6.6% in December and an increase of 15.5% recorded in the 12 months to January 2015. Month on month, January’s fall of 0.5% compares with an increase of 0.5% recorded in December and a decrease of 1.4% recorded in January of last year. A breakdown of the figures shows that in Dublin property prices decreased by 1.2% in January and were 3.4% higher than a year ago. Dublin house prices decreased by 1.1% in the month and were 3.2% higher compared to a year earlier while apartment prices were 4.8% higher when compared with the same month of 2015. Prices in the rest of Ireland rose by 0.1% in January compared with a decrease of 0.9% in January of last year. Prices were 11.4% higher than in January 2015. But prices are still some way below their peaks in 2007. For example in Dublin prices are 34.9% lower than at their highest level in early 2007. Apartments in Dublin are 41.8% lower than they were in February 2007 while house prices are 36.8% lower than at their highest level in February 2007. Prices in the rest of Ireland are 35.3% lower than their highest level in September 2007 and overall, the national index is 33.8% lower than its highest level in 2007. A lack of supply, particularly in Dublin has been pushing up prices, according to Alan McQuaid of Merrion Stockbrokers, and he expects price growth to be more modest over the next year or two. Investec economist Philip O’Sullivan pointed out that the market has been affected by new mortgage lending rules from the Central Bank introduced in February 2015 which restrict lending multiples and loan to values and he expects prices to keep growing once the impact has lessened. Demand is likely to strengthen and with supply increasing only slowly, prices are expected to pick up as the year progresses, although short term trends are likely to remain weak, according to Dermot O’Leary, chief economist with Goodbody Stockbrokers. Continue reading
January saw highest total approvals for home buying in UK for a year
The number of loan approvals for house purchase in the UK increased by 22% in January with the month seeing the highest number of total approvals since the beginning of 2014. The data from the Bank of England also shows that the number of remortgage approvals increased by 33% year on year. A breakdown of the data shows that purchase approvals reached 74,581 in January compared to the average of 70,221 over the previous six months while those for remortgaging was 42,228, compared to the average of 40,306 over the previous six months. According Peter Williams, executive director of the Intermediary Mortgage Lenders Association, the threat of a rate rise is no longer driving the remortgaging uplift and instead it is being supported by home owners looking to improve their financial situation through cheaper monthly repayments. ‘In particular, landlords are preparing for fewer tax reliefs like the loss of the wear and tear allowance and restriction of mortgage interest deductability. Accessing cheaper deals through remortgaging will help offset these when they come into place,’ he said. ‘With rising home owner equity and a range of competitive deals in the market, home owners have also been determined to capitalise on currently low rates and intense market competition amongst lenders,’ he explained. He also pointed out that the stability in lenders’ mortgage funding continues to improve. ‘While the government and the Bank of England have supported funding the market, an increase in retail deposits over mortgage balances is underpinning improved mortgage lending, with the savings inflow exceeding that lending by £215 billion or 17% in the last quarter of 2015,’ he added. Adrian Gill, director of Reeds Rains and Your Move estate agents, believes it signals a strong spring buying season ahead. ‘Interest rates aren’t going anywhere fast and while cheaper mortgage deals stick around, buyer demand is chomping at the bit. With all the various government initiatives now in place, many first time buyers consider this their best shot at making the finishing line and purchasing their own home and they are upping the ante to make sure they don’t miss out,’ he said. But in reality, he pointed out that the market currently favours sellers. ‘Those looking to put their home on the market haven’t been in such a strong position since before the recession. House price growth is gaining strength on both an annual and monthly basis, and with an army of eager first time buyers it’s a brilliant time for existing home owners to be advancing up the property ladder. Ultimately, activity levels won’t be able to keep up the pace unless there’s a steady stream of homes for sale entering the ring,’ he added. But Martin Stewart, managing director of the independent mortgage broker, said that the forthcoming referendum on the UK as a member of the European Union could slow the market. ‘The beginning of 2016 has been far busier than usual in the… Continue reading
