It seems that Brits’ love affair with property in France won’t be dented by increased property taxes. UK buyers are still heading to France in significant numbers ‘with the residential real estate sector proving a beacon of hope in a recuperating economy’, according to the Daily Telegraph.

Increases in the amount of tax property owners pay on rental income seems to have had little impact on demand for French property, with many British buyers looking to live in their home rather than to let it out. We look at the buoyant French property market next.

Buyers of French property not deterred by rising taxes

Ian Cragg from foreign exchange broker TorFX says that the pound’s increased strength in 2012 saw interest in French property remain strong. He said: “Sterling reached a near four-year high of almost €1.30 against the euro in the summer of last year, with UK investors seizing the moment with a record number of transactions heading across the channel for property deposits and purchases.”

And, it is in the cities that buyers may see the value of their French property rise in 2013. The latest report from the FNAIM (the body that represents French estate agents) forecasts a deflationary drop in property values across France of between 1 per cent and 5 per cent this year. However, the Telegraph reports that FNAIM believe there will be rebound gains of 3 per cent to 8 per cent in the major cities, led by the capital Paris.

A significant proportion of people buying property in France do so with the intention of moving into it in the short or medium term. Consequently, increases in the taxes on rental income haven’t had a huge impact on demand and aren’t a deterrent to buying.

Demand for French property remains and I expect the market to be relatively buoyant in 2013.


Author Nick Marr


Are you looking to buy property in France ? Riviera , Alpes-maritimes , Charente , Provence - Var , Languedoc-roussillon

Are you looking to rent property in France ? Arcachon , La Baule , Paris , Le Barcarès , Cannes

Author

  1. avatar
    Nick Marr

    I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.