Queries into French property are up by 60% in the first quarter of 2016 compared with the previous year, the current data programs, with steady growth anticipated for the rest of the year.
Figures from the FNAIM, the national association of French estate representatives, reveal that a record breaking 800,000 older properties were sold in 2015.
The yearly analysis of the French property market from Home Hunts suggests that there was a large renewal of British buyers in 2014. It says that it was a great a year for negotiations due to a mix of versatile property prices, low rate of interest and favorable currency pairings
Overall the prime property market on the Riviera is booming, improved by rate falls inland, and an increase in sales in seaside places, such as Cannes and Saint Tropez, the report states. It predicts that the prime markets on the Riviera, in Paris, Toulouse, Bordeaux and parts of Provence and the Alps result from see rate increases throughout 2016.
While the upcoming referendum in June on the future of the UK in the European Union could have an effect on British buyers' confidence in the market, the firm reports that up until now there hasn't been much of a visible impact.
While the marketplace continues to enhance, June s EU mandate will certainly agitate certain British customers, however, if there is a Brexit, I don t think it will greatly impact those purchasing property overseas, stated Tim Swannie, Home Hunts director.
So far it does not seem to have impacted British purchasers hunger for French property. The pound has actually lost a little strength compared with last year, but it is still relatively high if you look at it over the previous 5 to six years, so British purchasers can still actually make the most of their spending plans, he added.
However, there are likewise many Dutch, Belgian, German, Scandinavian, Swiss, American and Middle Eastern buyers active in the market and the report mentions that the brand-new LGV (Ligne Grande Vitesse) train line which will connect Bordeaux with Paris in 2017 means that property in the location is increasing in value. The TGV now runs from London to Marseille and locations of Provence are becoming more popular as a result.
Looking ahead the report suggests which areas of France are most likely to be good buys. It says that on the popular Riviera areas such as Biot, Opio, Roquefort-les-pins, and Chateauneuf de Grasse might prove popular as buyers are now getting more for their money. In neighboring Provence locations such as Bormes-les-Mimosas and Carqueiranne are described as offering exceptional value for money.
In the south west of the country, another location popular with British purchasers, Cahors, Saint-Cirq-Lapopie, and Figeac presently offer much better value than the Dordogne, while in Languedoc the city of Beziers remains in a location going through a facelift and housing stock is starting to move.
The report also says that Paris saw increased sales in 2015, particularly in November and December and is likely to continue to be popular with buyers from all over the world as they see property there as a safe investment while costs are appealing compared with London.
Property sales enhanced in Paris throughout the year and according to the Paris-Ile-de-France Notaires saw an unmatched level of activity in September and November 2015 where property sales were up 42% on the exact same duration in 2014. This was a general boost of 21% when compared to the average over the last years.
Paris costs are very appealing if you compare to London where costs are practically three times greater. Investors prefer to invest their funds in obtaining prime homes rather than the unpredictability of the stock market at the moment, stated Herv L vy, Home Hunts Paris based consultant.
Overall in 2015, Home Hunts found that the most desired areas are the north of the 16th arrondissement, beside avenues Foch and Victor Hugo, and along the Ranelagh gardens, the 8th arrondissement and its golden triangle, in addition to the 8th and the 17th arrondissements by Monceau Park and property in the 7th or 16th arrondissements that offer views of the Eiffel Tower.
Our customers wish to reside in a prime location, in security, in a property that is a long term investment. In regards to how the marketplace is going to advance, we anticipate small price increases in 2016 followed by more increases in 2017, so it is presently still an exceptional time to purchase prime property in Paris, added L vy.