Buzz Returns to French property market

Country:  France

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• Mortgage applications up 9% during August

• Property sales 15% higher during August

• West of France proves the most popular with British Buyers

Interest in the French property market continued to grow during August, in line with positive macro-economic news.

In mid-August, it emerged that France was the first of the EU nations to come out of recession, showing growth of 0.3% between April and June.

Relative to the UK, the French economy has been much less exposed to the hard-hit financial services sector, while the French property market, and household finances generally, are also less geared on debt.

Athena Mortgages saw an 18% rise in mortgage enquiry levels during August, compared with the previous month, and a 9% rise in French property mortgage applications.

Its figures were consistent with those of Sextant French Property Agents, the network of French estate agents, where enquiries were up 30% in August relative to July, and French property sales a significant 15% higher.

During August, French property prices nationwide collectively fell back slightly (-1.2%) according to data from French estate agency body, FNAIM, although there were naturally regional and area-specific variations, making for interesting negotiating conditions.

Average property of property in French, despite recent rises in some areas, are still significantly discounted relative to 18 months ago, and are one of the key drivers of interest from would be bottom-fishers.

The area of France that is most popular with Brits buying property in France at present is the West. Enquiry levels from British buyers for property in Brittany, were up 25% in August, and these buyers are mainly looking for older properties in France that are in need of redecoration and refurbishment.

The average sale price of a property in Brittany is currently €130,000 (£119,000).

Budgets are bigger in the two other most popular areas, Poitou-Charentes (£295,000) and the Dordogne (£185,000), and again the focus in on French property in need of refurbishment.

John Luke Busby, director, Athena Mortgages, comments: “There’s a feeling among prospective buyers of French property that we’re now in the bottom of the trough and that if they don’t make the move soon, they will lose out on some of the most competitive prices to be had in a long, long time. This is reflected in the growing number of estate agent enquiries and mortgage applications. The buzz that once surrounded French property is beginning to come back. People now have the chance to buy in at prices that would have been unthinkable a few years back and lock in to very attractive mortgage rates.”

Matthieu Cany, managing director, Sextanat French Property Agents, adds: “Both enquiry levels and actual sales are really picking up. As in the UK, people are sensing that now is a window to buy French property at exceptionally competitive prices, and more and more people are doing just that. Most of them are targeting properties that need work. They obviously feel that by adding value to a property they will amplify the upside when the market bounces back.”

See Also:   Athena Mortgage, France, Marc Da-Silva, Mortgage, TV

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