France is climbing back up the popularity ladder when it comes to foreign real estate buyers according to Google. Their search data shows a strong increase in demand among foreigners looking for property in France: in Q1 2015 search queries were up 18.8 % on the same period last year. Although Russian buyers have almost disappeared, the British are renewing their love affair with the République and gradually returning to the market after a prolonged absence.

House prices are easing in many locations, fixed interest rates have hit record lows and thanks favourable currency exchange rates, if ever there were a time to by property in France says Tranio.com an international real estate broker.

Falling prices

The market in ‘Ile-de-France’ (Paris) has seen prices fall by 1% during the first quarter of 2015 according to figures published by National Federation of Real Estate (Fédération Nationale de l’Immobilier, FNAIM) and it doesn’t stop there. Prices are going down across the country and Knight Frank is reporting 2.3% drop last year. Forecasts confirm this trend for 2015 with experts suggesting 1.0–1.3% decline this year. While this situation is beneficial for buyers in the midrange market, no strong impact is forecast for the high-end property segment.

According to Meilleursagents.com, the average square metre in Paris is selling for €7,810, in Nice at €3,754 and in Biarritz for €4,799.

Some experts believe that French property still remains overvalued and new apartments are showing stable prices despite the general slowdown. According to French Federation of Property Developers (Fédération des Promoteurs Immobiliers, FPI), the average price for a new home has even slightly increased: €3,945/sq.m in comparison to €3,932 in 2014.

Interest rates hit record low

French mortgage rates are at an all-time low. Buyers can secure a 20-year mortgage at a fixed rate of 2.3%, according to Empruntis. Interest rates on 7-year loans vary from 1.11% to 2.9% and even the maximum rate for 40-year loans is only 4.1%, which is nevertheless relatively low. Non-residents can get a mortgage in France capped at 60–70% of the property value with maturity terms of 5–25 years.

Exchange rates bliss for dollar and sterling spenders

The euro declined by 68% against the dollar and 57% against the British pound since May 2014 according to Oanda.com. This means that buyers from Britain and the States have significantly improved purchasing power in Europe. With the pound sterling worth €1.39 (up from €1.23 in May 2014), the price of €1M house in France has fallen by £93,800: from £811,600 to £717,800, meaning big savings for smart investors.

 

 

 

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

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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.