The French property market is beating expectations at the moment, as Notaires – a French legal specialist with public authority – recorded more than 900,000 property sales in the 12 months to May.
Buyers are making the most of the competitive prices and low mortgage rates to help them get on the property ladder and make the most out of the French real estate market.
International buyers and investors in real estate are reaping the benefit of competitive prices too, offering higher returns on investment.
It is a great opportunity for buyers to take advantage of low prices and laid-back borrowing terms – it is a lot less stressful to buy a house in France now compared to before, which is influencing, even more, people to buy as opposed to renting.
Notaires de France recorded 907,000 property transactions in the 12 months from May 2016, which is a lot higher. During the same time in 2016, there were 824,000 sales, which is demonstrating the French property market exceeding expectations.
The forecasts look strong for France real estate and for all those involved in the housing market. Investors are relatively excited about the future and more and more people are interesting in buying.
An increase in demand has witnessed property prices rise, despite differences across the regions. The highest price increase was found in Bordeaux where demand for older flats is seeing prices per metre-square go up 15.5% year-on-year. This may be related to the new high-speed rail link to Paris, which is attracting more and more tourists and investors alike. Nimes saw their prices per metre-square go up by 11.1%, Lille by 8.5% and Paris by 5.5%.
Predictors of the French property market say that 90% of purchases are made by people who want to buy to live instead of buying to rent. This means that more people are looking to invest in the French real estate market to settle down instead of monetizing the opportunity.
Notaires de France also pointed out that house prices would be expected to show an annual increase of 1.2% by the end of August and the average price of buying an apartment is expected to go up by 4%.
On the opposite side of the scale, Notaires de France have warned that they expect tax reforms, which could cause a slowdown in the momentum that has been achieved. This could particularly affect the new-build industry, which is widely dependent on tax incentives to drive them forward.
In all, the French property market is impressing a lot of people in the real estate market, including buyers, sellers and investors, and it looks like the trend is not set to change anytime soon.
Written by Gemma Smith
