‘Air of cautious optimism’
With France winning the 2018 football World Cup, there is a new optimism in the country – and a new focus on living in France and buying property there.
As the BBC’s Hugh Schofield writes, “No-one can mistake an air of cautious optimism about France today that is as welcome as it is unusual.”
Property sales peaking at record levels
Interest in French property is now at an all-time high, with sales peaking at record levels, as Halo Financial
reported recently. In the year to June 2018, property sales reached 950,000, close to the magic one million level, according to the latest figures from FNAIM
, the Fédération Nationale de l'Immobilier.
South of France has real appeal
For many foreign property buyers, the south of France has real appeal, thanks to its enviable lifestyle. Property buyers in France are attracted by the marvellous Mediterranean climate, incredible coastline and mountains, gourmet food and wine and more.
Strong rental returns
The region also provides strong rental returns on investment properties. In fact, new research from holiday home insurance company, Schofields, shows that Avignon is among the top investment hotspots in the world. Looking at potential income for an average holiday home of 90 square metres, Avignon is among the top 10 destinations in the world, with a 3.5% return on investment.
Brexit ‘not impacting clients’ desires to buy’
The South of France is so popular that leading real estate specialist, Erna Low Property
. is expanding in the region and is showcasing new luxury homes.
James Ross, Sales Director at Erna Low Property, says, despite the Brexit turmoil, interest from British buyers remains strong.
“Our clients are looking for value for money properties in France specifically along the French Riviera so we have expanded our portfolio to reflect these enquiries. Mortgage rates are very favourable, exchange rates are stable and Brexit is not impacting our clients’ desires to buy in France.”
For British buyers, the value of GBP-EUR is currently at around 1.13 at mid-market rates, not too far off its 1.15 annual high and way above the 1.07 low in August 2017.
The latest political and economic twists and turns of Brexit mean it is worth keeping an eye on the latest currency movements, as well as obtaining expert guidance for money transfers and using the right currency tools that help you maximise your returns.
Getting to the South of France
For those flying to the South of France from the North West of England, there are new cheap flight
options from Liverpool.
Budget airline easyJet has launched a new route between Liverpool John Lennon Airport and Toulouse, which begin on Sunday 28 October 2018. The winter service will operate four times and week.
Five new properties in the South of France at under €200,000
Here are five new houses listed by Erna Low Properties
from under €200,000.
Villa Vert Marine, La Garde from €202,000
You can also keep up with the latest news on property abroad and how it affects the currency markets in our informative news
Ideally located in a sought-after area of La Garde, Villa Vert Marine offers 35 luxurious, spacious and bright one to three-bed apartments with contemporary designed living areas, high-quality finishes and superior comfort.
En-suite bathrooms and large bay windows extending to balconies or private gardens come as standard with all apartments, overlooking the sea.
The fully enclosed and secure residence is built around its beautiful private swimming pool, surrounded by private landscaped gardens.
Domaine des Cavaliers – Aix en Provence from €196,000
Domaine des Cavaliers is in a peaceful and residential neighbourhood in the charming city of Aix-en-Provence
, capital of Provence.
It offers panoramic views of the Sainte Victoire mountain. Each property has bay windows, en-suite bathrooms, large terraces and the use of a private swimming pool.
The Residence includes 80 high-standard apartments from studio to three bedrooms. Prices range from €196,000 to €459,000.
Domaine Sunset Garden, Le Pradet, Cote d’Azur from €425,000
Residence Sunset Garden is in the heart of the Cote d’Azur
, overlooking wooded hills. These three-bedroom apartments feature a beautiful terrace or a private enclosed gardens with exclusive usage of a heated swimming pool.
In total, there are 70 apartments as well as secure underground parking.
Le Pradet has a lively Provençal pedestrianised square of shops, with restaurants, a local farmers’ market and the 7km beaches with shaded coves.
Rivage, Hyeres-les-Palmiers, Cote d’Azur from €202,000
The Rivage residence enjoys an exclusive location in the heart of the charming village of Hyeres-Les Palmiers and is only 10 metres from the beach. Exclusive facilities include a pool, pool house, solarium and a wellness area.
This residence includes 80 high-standard apartments ranging from one to three bedroom all extended by beautiful and luxurious terraces and balconies overlooking the sea. For boat enthusiasts, a private port is nearby.
Val Ora, Nice from €298,000
Paris property prices set to hit new high
in the French capital, where prices have been rising by up to 12% a year, are expected to hit new records in 2018, boosted by strong demand from foreign investors, according to WIRE Consulting, an independent company specialising in international real estate services.
French property values have risen rapidly
Back in 2016, property values in the French capital were stable due to political issues and an overvalued market. However, prices have risen rapidly following the election of President Macron in 2017 and the effects of Brexit moving international interest from London to other European cities like Paris. In addition, Middle East investors have been changing their focus from Singapore and Hong Kong to buy in Paris.
‘Property value to break records’
Angelo Cinel, Chief Executive Officer, of WIRE Consulting, says, “We predict property value to break records by the end of 2018 due to interest rates at historical lows, expected implementation of lower taxes on capital and removal of Paris rental caps.
"The French city offers relevant appreciation margins after what was a five-year-long stand-by. Property prices have risen more than 8% since 2017 and 2018 values are expected to keep rising."
Foreign investors boost transactions
The heightened demand from foreign investors has substantially increased the number of real estate transactions which in 2017 was over 10,000. Around 30% included high-value properties with an average price of over $1,000/sq. ft., which saw strong demand from international buyers.
US Dollar-Euro rate increases US buyer interest
Paris is predicted to become one of the leading European countries for real estate investors
looking for a profitable long term capital gain, says WIRE Consulting. The low interest rates and current strong US Dollar to Euro exchange rate has boosted purchases from the U.S. by 7.5%.
Prices and annual growth differ significantly between different arrondissements with higher values in the 6th
arrondissements where average prices exceed $1,226/sq. ft.
Average prices ‘could rise 50%’
If international investors
continue to invest in the French capital, average prices per square foot for luxury properties could increase 50% of the current value, it predicts. Now’s the time to look for your perfect Parisian property, before prices push higher!
Find out more
about properties in the different regions of France.