Favourable Buying Conditions
A significant split is emerging in the French property market between domestic and overseas buyers. While property prices are falling and the domestic market is struggling, there has been an increase in demand from overseas buyers looking to take advantage of the current favourable conditions.
Experts predict that property prices will fall by 2-3% this year, a return to 2007 levels, and the government is being urged not to interfere. Official figures for property sales in 2014, released by the Notaires de France organisation (reported in the June 2015 edition of Living France), estimated a drop of 3% compared to 2013.
In contrast to this, there has been a spike in sales in 2015, following the UK election result in May and it seems clear that a Conservative majority has given confidence to UK buyers who see the triple whammy of low prices, cheap financing and a weak euro as an exceptional opportunity. Add in the fact that prices have dropped in recent years and that you can get a fixed rate mortgage for around 2.55% with an 80% loan to value makes for once in a decade buying conditions.
As you may have found through your search, there are a lot of properties on the market at the moment, another nod in favour of the buyer.
