Resicom – Holiday Investment – 04-21 – LB

French Property Market Reborn

The election of President Macron last year has seen the French property market reborn as overseas property investors are attracted back to the country.

We mentioned earlier in the week how Paris property values are expected to soar to new record highs this year, but it is not only the French capital that is booming, the French property market as a whole is thriving.

Many British overseas property investors are speeding up plans to move to France in order to beat Brexit according to BNP Paribas International.

The British have always liked France as a destination and are still the top foreign investors in the country, making up 32 per cent of non-resident French property market transactions in 2017.

Whilst property prices in major cities such as Paris and Bordeaux are rising apace, many smaller towns and rural areas are seeing prices stagnate, so bargains are still available for those overseas property investors prepared to go slightly further afield.

Property prices actually fell slightly in Brittany and Provence-Alpes-Côte d’Azur (including the French Riviera and the ski resorts), as well as Corrèze in the Limousin, and Haute-Vienne, a popular department with the British that includes Limoges.

Prices for country properties stood at just over €160,000 in 2016, still well below the 2007 peak of €220,000. Whilst in as many as 12 French departments the average price is still below €100,000.

After the French capital of Paris, the Dordogne is the most popular spot for British overseas property investors.

According to the Notaires de France, average property prices in the historic area of the Dordogne have actually fallen by around 10 per cent over the last five years to an average of around just €150,000 even in the more expensive areas. The cheaper north-east part of the Dordogne still has many character stone properties available for under €70,000.

The Languedoc is also growing in popularity where you can enjoy the south of France without the higher cost of the Riviera. Historic cities such as Montpellier, Nimes, and Perpignan offer affordable options.

For the most affordable options it is worth looking inland. The Poitou-Charentes in the south-west of France remains popular, and the inland towns of Deux Sevres and Vienne can offer up bargain property buys.

It certainly seems to be a good time to buy in the French property market, and it might be worth getting in before the ‘Macron effect’ spreads out and increases property prices in the rural towns and villages so popular with British overseas property investors.

Bonne chance!

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